Innovative Culture Making An Effective Organisation Commerce Essay

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There are three most important categories of innovation which helps the change. Incremental innovation allows you to maintain your market position at its best. Expansionary innovation involves making a drastic move in your business or industry by creating a new product or business model that significantly boosts your market share. Breakthrough innovation allows you to enter a new market or business, or to dramatically expand the number of customers that buy your products and services. They're all important and most companies need to do all three at some point in time.

People are always confuse innovation with more creativity or "big ideas," but context is essential. Because a company's innovation strategy must support its business strategy, the definition of innovation has to be tied to 'What am I trying to do in my business so that I will be the winner?' The most successful companies anchor innovation in where they want to take their organization, how to create competitive advantage, and how to best serve customers. And the last most important point is essential because true innovation needs to generate a payback, and someone needs to think it is valuable and be willing to shell out some cold hard cash-or whatever it is may be a great invention but it really is not innovative.

The first thing which needs to be developed is capturing good ideas from a wide variety of sources. The second and most important is keeping those ideas alive by playing with them, discussing them, and using them. Imagining new uses for old ideas is the third but not the least, part-some knowledge brokers encourage cross-pollination by creating physical layouts that allow, or even force, people to interact with one another. The fourth and last is turning promising concepts into real services, products, processes, or business models.

Companies are free to use all or part of the cycle as per their requirements. Large companies particularly need to move ideas from one place to another. Others can hire people who have faced problems similar to the company's current problems. The most important chapter is that business leaders must think differently or change their thinking about innovation, and they must change how their company cultures reflect that thinking.

Successful innovation needs processes and tools that can help good ideas to be recognized and transform them into captured values. The organizations benefits when they configure their innovation networks for cost and manage them for value. To improve business performance there is a need of innovation and technology. The companies which are innovative are much more successful in their technology.

The term innovative culture can be explained as making some changes to the old or existing organizational culture so as to adopt the changing circumstances. An innovative culture is the one in which continuous improvement throughout the organization is the norm. It involves continuous research.

Innovation must be undertaken not just for its sake, but with the purpose of bringing measurable value through revenue and profitability enhancements.

Innovative practices should have a central role in achieving long-term competitive advantage. This is especially important as, early in the innovation process, there is a tendency not to be bounded by business constraints. It is important to provide a direction anchored by concrete goals. Goals allow the employees to understand what the company is planning to achieve. It is important that goals should be well articulated and understood by everyone across the company, such that activities are pursued with a clear purpose.


Innovation is used by the company who wants to stay in the long term. It's a key discipline within it underpins quality customer service. Although many companies recognize its importance, it can be difficult to create an innovative culture and identify the sources of innovation. A good foundation is to build a various cultures in which every employee-not just the product but also development team-proactively develops ideas. Companies view community needs as opportunities to develop ideas, serve new markets, and solve long-standing business problems.

The last policy for the change is to create change through systematic policy of innovation. This area is being given more attention now-a-days. Exploiting success is more productive for good enterprises. And without these policies no organization can hope successful innovator. A policy of systematic innovation is very important to be a successful change leader in an enterprise. Policy of systematic innovation creates the mindset for an organization to be a change leader. It helps the entire organization to see change as an opportunity.

It is the area to which most attention is being given today. It may, however, not be the most important one -- organized abandonment, improvement, exploiting success may be more productive for a good many enterprises. And without these policies - abandonment, improvement, exploitation - no organization can hope to be a successful innovator.

But to be successful change leader an enterprise has to have a policy of systematic innovation. And the main reason may be different that change leaders need to innovate - though they do. The main reason is that a policy of systematic innovation creates the mindset for an organization to be a change leader. It helps the entire organization see change as an opportunity.


Every organization should make innovation a part of its DNA, making creative thinking and setting up a way for new ideas.

Example one: India's Tata group has made innovation as a part of its DNA, making creative thinking and so all the employees at every company works as an innovator. Tata group, an Indian century old power house responsible for first steel mill in nation, power plant among other different achievements. Chairman Ratan Tata decided innovation is the best factor for his company to survive, when India opened a long protected economy in 1991. Every employee should think and work as an innovator at every company of Tata group.

Tata group arranges an innovation workshops to get new innovation ideas and invites academics and experts in the field of innovation to conduct workshops and seminars in which new innovation ideas, concepts and tools are introduced and stimulate innovative thinking among all the managers of the Tata group. Tata group also celebrates Tata Innovation day in which the best innovators of the Tata group are awarded.

If you don't have clear systems for funding ideas and for approving, a culture of innovation won't take place. CEO is the most important person in an organization to build a culture of innovation. Importance of innovation should be explained to the managers directly by the CEO of an organization and to celebrate innovative efforts, including who failed to do so but attempted the culture of innovation.

The smartest innovators find ways to make ideas bubble up from the floor:

Right. See at Kaiser Permanente, the healthcare organization. They have got this whole approach to design thinking to improve the quality of the patient experience at the healthcare organization. They have teams of nurses and other professionals, healthcare workers, working on projects consistently for the patient's health.

Example two: A team of workers focused on how nurses spent time in every shift while the information is exchanged and the patient's health and needs as per various patients. And by using observation - seeing what really was happening - brainstorming and rapid prototyping, they came up with a new approach, whereby now they change shift on the ward in front of patients.

They've developed a software tool to help them do this at instant, and they've brought the time in between shifts that they're away from the patients from 40 minutes on average down to 12 minutes. And that's increased the confidence of the patients because the patients can see the information's getting transferred and translated in front of them.


There are eight orientations of innovation which are stated below









The value is in the combinations of each of these orientations within teams and organizations


There are many ways to tackle the problems and get a change. One is by searching what is changing and how it is changing. And other is what is likely to happen, plans ahead and acts accordingly. Planning is the most important factor to go through a change. It is the best strategy which then helps to become a part of our forward plans. When innovators come together the first question which is discussed often is "which tool you are using?"

Managing change is important. Without competent management the process of transformation can get out of control. A manager's job is not finished only by introducing a change. The most important thing is to manage the change. The success or failure of introducing a change mainly depends upon its efficient management. This can be better explained with the help of following example.

Attempting to change one or more aspects of culture of the organization is a long term project. Cultural change is a slow process and one that should be approached carefully. Members will need time to adjust to the changes, quite often they may have problems in accepting changes if they are too large or too quick. If the company has a very strong culture, then it may be more difficult to bring about changes in its culture. Several steps should be taken by any company wishing to change its organizational culture, to ensure that changes are successfully implemented, with a minimum of disturbance to the workforce. Changes in the organizational culture may sometimes lead to high performance and success of the company or may even lead to the close down of the business. So the appropriate time to make cultural changes in the organization must be found out through the process of continuous research.

A change in any one of these areas raises the question: "Is this an opportunity for us to innovate, that is, to develop different products, services, processes? Does it indicate new and different markets and/or customers? New and different technologies? New and changed distribution channels?" Innovation can never be risk free. But if innovation is based on exploiting what has already happened - in the enterprise itself, in its markets, in knowledge, in society, in demographics and so on - it is far less risky than not to innovate by exploiting these opportunities.


Sometimes business attempts to find innovations in the social sector are discounted by critics as public relations ploys. But as the breadth and depth of each company's commitment should make clear, that would be an extremely costly and risky way to get favorable press. The extensive efforts described here, with their goal of creating systematic change, also cannot be justified only on the grounds that they make employees or the community feel good, even though that obviously motivates people to work hard. In reality, the primary business justification for the sustained commitment of resources is the new knowledge and capabilities that will stem from innovation, the lessons learned from the tough problems solved.

Example three: Bell Atlantic's Project Explore was expensive, and it was not philanthropy. It was funded out of operating and technology, development budgets. Certainly, Bell Atlantic people felt good about helping inner city school children succeed. And the company generates a growing and continuing revenue stream from selling network services to the education market, which it learned how to approach from its extensive experience in Union City. But the ultimate business justification for the Project Explore was the know-how Bell Atlantic developed about networking technologies.


Changing organizational culture can be called as change in the identity of the company itself.

Each and every organization has its own strengths and weaknesses.

In today's era every organization should be aware of the new technologies to be a good competitor in the competitive market.

As per my research I think that there is wide rate of innovation and changes taking place in the world and some of the enterprises are failing to act as per new innovations and changes, so such enterprises cannot survive in this competitive world.

Changing organizational culture can be called as change in the identity of the company itself.

Innovative culture provides flexibility.

Innovative culture allows creation of new ideas.