However, one way through which, businesses have managed to produce timeless brands, as well as change their operation structure is innovation. Innovation, as scholars assert has been proved to be the principal factor that influences modern businesses that are success and growth oriented. A good illustration of this is the high innovative companies such as Toyota motor company, which deals with production of cars and spare parts, as well as Nooks, which Is a mobile phone company.
Innovation has led to Increased efficiency and discovery of new ways of operations from time to time; this has been Intensified through Involvement of open Innovation communities, which generate Innovative Ideas that alp entrepreneurs solve problems within their businesses. As such, the organization does not need to establish a research and development unit, whose sole role is to help in formulating strategies that will FLT customer demands; a process that is very expensive especially for small and medium sized entrepreneurs, which face diverse financial problems.
Nonetheless, innovation whether through organization R&D department or through open innovation communities, results to growth and success of the business as it enhances it competitive advantage, as well as maintenance and expansion of its market share. Introduction One of the principal factors affecting the operations of businesses is the level of innovativeness that they adapt. Innovation In businesses allows continuous production of timeless brands of products, which In turn allows the business to malting and expand Its market share, as well as Its competitive advantage (Lepton and Hellcat, 2010).
This is based on the fact that technology trends seem to move in a business by maintaining an uptrend with the current technology. The uptrend of a business is maintained by continuous innovation, which is the principal cause for the request changes taking place in business technology. However, it is crucial for a business to comprehend that prior to undertaking an innovative strategy; it must be prepared to undertake change.
Scholars hold that change is a catalyst for innovation, as it is the desire to change the way of doing things that encourages and enhances the process of innovation, by allowing people to create ideas that will help transform the business and take it to the next level in which, it will be better than its competitors, thus, have competitive advantage, as well as expand and maintain its rent market share (Lepton and Hellcat, 2010). Therefore, the principal role of this paper is to establish the role played by innovation in a business, and how businesses that have already adapted innovation as part of their growth strategies are performing.
Innovation To begin with, scholars define innovation as the process through which, significant transformation takes place within a business or in its line of products and services (Lepton and Hellcat, 2010). However, for this process to take place, there is need for subsequent adjustment in the structure and functioning of the organization, and also, there must be a successful introduction, of the process, which all stakeholders within the organization appreciate and are certain that it will help in the attainment of organizational goals and objectives (Lepton and Hellcat, 2010).
The reason behind this argument is that, lack of incorporating some of the organization’s stakeholders during the introduction of the new process might affect the intended outcome, as some of the stakeholders for instance employees, who fear that the new process might result to the loss of their Jobs might be resistance to change (Lepton and Hellcat, 2010). This means that the innovation strategy will not be implemented appropriately and this will result to a huge loss to the business as it might have invested heavily during the creation of the innovative process (Modulo and Parallax, 2009).
One principal characteristic of organizations that are highly innovative is the presence of a research and development department, whose principal role is to conduct research on the possible ways through which, the operations of the organization can be improved, not only for the sake of enhancing organization profitability, but also for the maintenance of customer loyalty, reduction f operational costs, expansion of the market share and maintenance of competitive advantage against rivalries (Modulo and Parallax, 2009).
However, it is crucial to note that innovation does not come as a new and fresh process, but it rather emanates from improving the past processes in order to formulate new and powerful techniques of doing business (Lepton and Hellcat, 2010). There are different types of innovation, which a company can undergo when improving its operations, and which businesses can apply based on the areas that they wish to change. These innovation types include, process innovation, which takes lace when an organization changes the style of conducting its operations.
For instance, the use of Computer Aided Design Software by the clothing and fashion industry, as it was cost efficient, faster and precise (Modulo and Parallax, 2009). Product innovation is another type of innovation, which involves developing a new place of personal computers that are bulky. Service innovation, on the other hand, involves changing or improving the services provided by the company (Modulo and Parallax, 2009).
The other type of innovation occurs when a business transforms its Tyler of conducting business, and it’s referred to as the business model innovation. For instance, a company which adapts diversity as part of its growth strategy changes its business model as it must train its employees to embrace diversity (Lepton and Hellcat, 2010). Lastly, is management innovation, which changes the organization’s management structure, to one that is highly effective, productive and profitable (Lepton and Hellcat, 2010).
Toyota as a Good Example to Illustrate Innovation Toyota is not only a good example of an innovative company, but rather an example of a highly innovative company. Toyota, which is a Japanese motor corporation, has been in business for 100+ years, and it currently markets its products in more than 170 countries across the world; and has established 53 manufacturing facilities in 27 countries, from where it can assemble and manufacture new vehicles (Daniels et al. 012). The forefront business strategy that has helped Toyota maintain its competitiveness in the automobile industry is innovation, this is done through Toyota Production System (TIPS); a section within the company, whose principal focus is to formulate ideas and strategies, through which he company can maintain its production of timeless models of vehicles (Daniels et al. 2012).
Through TIPS, the company developed a strategy known as Just In Time TIT), in order to reduce the time taken during manufacturing, as well as ensure that environmental friendly products are manufactured such as Pries (Daniels et al. 2012). Another role of TIPS is to enhance production developments; this occurs after an intensive investigation of the target market to establish the preferences and tastes of the customer and the changes in lifestyles, as well as, the level of income.
This information is used to formulate innovative ideas, which are in turn used for production of new models, which not only satisfy the customer’s demands and needs, but also are in line with the set environmental regulations. One of the most adorable products produced by Toyota motor company, which was highly fashionable to attract customers and was also environmental friendly is the Toyota Hybrid referred to as the Pries. Pries proved to be the best alternative for conventional cars, as it required less fuel and had lower emissions, which meant fewer effects to the environment (Daniels et al. 012). Nooks Phone Company is also a Good Example of an Innovative Company Following the introduction of smart phones, Nooks remained behind, as it did not produce any smart phone for its market. This led to a drastic drop in its sales and revenues, while its competitors such as Samsung were tremendously expanding their market share and competitive advantage (Radio and Pariah, 2012). However, this did not prevent the mobile phone company from standing on its toes in an attempt to protect its market share and competitive advantage (Radio and Pariah, 2012).
The company manufactured smart phones, and turned its focus on the emerging arrests, which have growth potential such as India. However, the company used standardized approaches to enter the new market, a situation that almost led to its However, through environmental scanning, the company established that it had to change its business model for it to survive in the new market. The company established a strategy which can be more or less referred to as network orchestration (Radio and Pariah, 2012).
This strategy allowed the company to adapt diversity, by forming partnerships with the local companies and allowing the local people to work n its research and development department, as they were completely aware of the needs of the customers across the country. Within a short period, Nooks produced mobile phones with the label, “Made in India” (Radio and Pariah, 2012). Through this, the company was able to overcome design challenge, which is a principal factor that affects the success of a company.
Also, by allowing diversity and working with the local people in its R&D, Nooks established that, the local people in India, especially in the informal sector were not connected to any financial institution and hush; they would not save their money (Radio and Pariah, 2012). Therefore, the cell phone company introduced Nooks money, which allowed the local people to save, as well as send money through their mobile phones (Radio and Pariah, 2012). The company also established that it would expand its market share and competitiveness, by targeting the agricultural sector.
As such, it formulated a product referred to as Nooks Life Tools a product that ensured that agricultural information regarding better farming techniques, as well as entertainment was delivered to farmers (Radio and Pariah, 2012). Factors that Prevent Businesses from Successfully Adapting Innovation One of the principal factors that prevent innovativeness within a business is resistance to change. This occurs when a number of the organization’s stakeholders feel threatened by change. As such, they hinder anything that can result to change such as innovation.
Resistance to change occurs when employees or managers within the organization fear that they might lose their Jobs if they accept change and innovation (Modulo and Parallax, 2009). Inadequate funds acts as a barrier to innovation, as it limits the ability of a company to construct a research and development unit, through which, evaluation and analysis of the target market can be conducted, in an attempt to formulate ideas and strategies that the company can adapt to enhance attainment of its goals (Lepton and Hellcat, 2010).
As indicated from the two companies above, Toyota and Nooks, a well established and equipped research and development department acts as the backbone of an organization, as it helps in the production of timeless brands, which help the organization to maintain its competitive advantage and market share. Also, poor innovation management skills are a challenge to a number of organizations and they terribly affects its operations (Lepton and Hellcat, 2010).
This is based on the fact that, although an organization can have appropriate and better innovative ideas, it can lack the knowledge and skills necessary for the implementation and management of the new strategies, and this result to obsolescence (Lepton and Hellcat, 2010). Conclusion In a nutshell, with the growing competitive world, businesses must formulate and identify ways through which, they can maintain and expand their market share and nominative advantage, amidst other well financed and established organizations operating in the same industry.
