Contemporary Management Essay Example for Free

Contemporary Management Essay Trivia: Did you know that 280 years ago, the British government announced if not the world’s first, then certainly the world’s largest prize for innovation at 20,000 pounds reward for anyone who can â€Å"discover the longitude†- according to John Brandt. What is innovation? Why do organizations pay so much on research and development just to develop more of these? In a nutshell: 1. Innovation is something that is created as â€Å"new†. * According to Marion Hembrick: Deliberate use of resources to create something new whether a new product, process, policy or procedure. Ex: An example of an innovation is that of a three-wheel car in 1886 by Mercedes Benz. * People use innovations for competitive advantage or to increase market share or ta have a better system, but is innovation alone essential in an existence of an organization? 2. Innovation is a game changer: Something that is perceived to be different and could contribute to a change in lifestyle. As said by Sheremata in â€Å"Strategy in Network Markets† there are two types of innovation: radical and incremental. -In competing with market leaders, challengers do innovations to gain market shares. * Radical * provide large improvements, costly and risky. Challengers hoping to gain monopoly power. * high possible return and embodies new knowledge * may affect competitive outcome * DISRUPTIVE-can penetrate and be widely accepted or it can fail and may bring about signification loss/cost an organization according to Christensen * Example: radical innovation of a 3-wheel petrol car to a 4-wheel petrol car which change lives and made it so easy with the convenience of driving or riding. * The move of a four wheel car was a game changer because it was an radical innovation that was widely accepted, where it changed lives. * Combined, adapted and improved and introduced as a â€Å"new and independent† innovation replacing the new from the old. * In technology, progress has been achieved through small incremental innovations that build upon each other: Jeff Lill of Microsoft said: A competitor comes in and does something interesting, then we come in and basically clone it and do it marginally better and throw some marketing clout behind it and then relentlessly make it better through the years. That is our strategy and it has worked†. * Incremental * Small or minor improvement. * Sustaining according to Christensen. * Market leaders merely do incremental innovations * Cheaper, doesn’t give impact in market share, but still done for sustainability * Ex: a minor change in a car’s dashboard, door or design. According to Everett Rogers: Innovation has five stages: 1. Knowledge stage- awareness stage 2. Persuasion stage- gather interest through be informed about the dimensions of the innovation 3. Decision- adopt or reject 4. Implementation- using the innovation 5. Confirmation- continue using or acceptance of innovation/ market penetration Innovation comes a long way not only with products. There are lots of successful innovations and there where those that failed as well. Innovation comes in different forms with the hope of improvement in shares, systems, and process. It may be changing the policies in your workplace to gain a more conducive environment. Is innovation important in your industry, because in this fast changing world, innovation plays a very big role in technology, but is it the same with other industries? With your company perhaps? Today the group is going to show you different views of different situations where innovation came distinct. Listen and Decide. Angelmar, R. 1990, Product innovation: A tool for competitive advantage, European Journal of Operational Research, vol. 47, no. 2, pp. 182-189. den Butter, Frank A. G, Mà ¶hlmann, J.L. Wit, P. 2008, Trade and product innovations as sources for productivity increases: an empirical analysis, Journal of Productivity Analysis, vol. 30, no. 3, pp. 201-211. Hambrick, Marion E. Diffusion of Innovation. Encyclopedia of Sports Management and Marketing. Ed. Linda E. Swayne and Mark Dodds. Thousand Oaks, CA: SAGE, 2011. 388-90. SAGE Reference Online. Web. 2 Feb. 2012 Innovation as a Strategy In Network Markets 2008, , Sage Publications. Jon Hughes 1999, The Innovators Dilemma. Neal Wyatt 2009, A History of Innovation and a Future of Possibility, Reference User Services Quarterly, vol. 48, no. 2, pp. 116. Product Innovation and Development in UK, German and Irish Manufacturing, 1997, Long Range Planning, vol. 30, no. 2, pp. 315-315 Richard Gray, Stavroula Malla Peter W.B. Phillips 2006, Product innovation in the Canadian canola sector, Supply Chain Management: An International Journal, vol. 11, no. 1, pp. 65-7 Sheremata, W.A. 2004, Competing through Innovation in Network Markets: Strategies for Challengers, The Academy of Management Review, vol. 29, no. 3, pp. 359-377. . Quality of Presentation Purpose: * to make audience think whether innovation is important or not * to prove that innovation, solely, doesn’t necessarily prove success nor failure * examples shown gave wide perspective and opened awareness to audience that there are different ways of achieving success depending on the industry and situation of the company: innovation may be or may not be important for survival * the presentation portrayed different scenarios to give the audience an overview of the different situations to gauge the risks on the success and failures innovation can give. * To some extent, the group agrees with the survival innovation can bring about, but there are other factors that should be put into consideration with bringing innovation in the market such as: compatibility of innovation in the industry, marketing, and timing * Why?- * Because innovation is dependent on the company or industry that it may give a positive or negative effect on. In conclusion, it depends whether a company needs innovation to live because with the different scenarios and examples presented, it showed that it does not necessarily follow that a company dies because there is no or weak innovation. Structure and Content: * Introduction- a brief overview of the definition of innovation and the introduction of the different views of situations where innovation and none innovation helped or failed in different companies. Answers the question why people or companies innovate. * Why?- proposing different views on whether innovation is needed in a company’s survival or existence * Brief examples: * Innovate and Live- (Apple, Google, 3M, Toyota, Microsoft) * Discussion of the Culture of Innovation * Senior Management Innovators: Steve Jobs * New and well designed products * Steady innovation in technology and tools where there is tough competition * Empowers innovation and balance products to cost requirements * Successful production (TPS) with management hybrid * Take existing products to improve * Didn’t innovate and Live- (COKE) * Not innovative * Used 4 P’s in Marketing-Product, Place, Price, Promotion * Acquisition and Risks of Acquisition * Innovate and Died- (KODAK) * Brief definition and situational examples of disruptive and sustaining innovations * Middle management resistance/CEO whether to innovate or not * Culture, core competencies- core rigid * Didn’t Innovate and Died- (Onetel, Fletcher Jones, Borders) * Reselling Optus-corporate Governance failure * High cost of production (producing) compared to import * Not embracing technology Wrap up: * Reiterating of the definition of innovation, how innovation is perceived in the presentation * How innovation is accepted in the society * Historical innovations: * modeling the different examples and the stands of each of the previous examples presented * going behind the culture of innovation * Today and innovation:survival, acceptance * Globalization in the market place and the build of innovation * The success and decline of different innovations: short term and longterm like facebook, networking, etc. * What affects innovations and how people accept or reject innovation * By-products synergy, networking what waste is produced by the company and finding a market place for the waste produced * Philanthropy * Dynamic management Delivery: Middle and Senior Management Individuals * Make them think whether they need innovation in their company or not may it be in the innovation of products manufactures, process, policy and procedures in the system. * Show them risks of innovation and make the audience aware that innovation may be beneficial for some and may be a cause of bankruptcy for others like KODAK * Why should you care?