Sunday 15 January 2012

Entrepreneurship and Innovation: Who Needs Who?

Entrepreneurship and Innovation: Who Needs Who?

Entrepreneurship and Innovation have always worked in coexistence. Entrepreneurs need to be creative and thus innovative, because as discussed before being innovative brings need for risk taking, and risk taking is a fundamental asset for any entrepreneur who wishes to be successful, as Dubrin clearly defines by saying “Most successful entrepreneurs are highly enthusiastic people who take sensible risks” (1997, p.5). Most authors will agree with this concept, for example Aidis and Welter (2008) agree in their book that entrepreneurs reflect this ‘risk taking’ attitude.

Reading many writers but in particular Drucker I think that it is important to draw the conclusion that we I order to encourage innovation, in parallel we need to drive forward entrepreneurship, because the two concepts work well together (Drucker, 1986).

This idea of working entrepreneurship and innovation together I think is useful for exploiting innovation and encouraging the concept. Because innovators will be looking for the best way to harness their business management processes and develop their companies, innovation seems to be the future for most organizations as has been discussed earlier in this blog.

However, I feel strongly that entrepreneurship is not a necessity for innovation, and innovation itself can survive without entrepreneurship. I think this because as ‘Edward de Bono’ said in the click at the beginning of this blog, “Innovation is like a band-wagon, and everyone wants to get on it” (De Bono, 2009). Therefore the big businesses are going to carry forward innovation into the future, in order to stay in touch with society.

In conclusion entrepreneurs need innovation, innovation doesn’t need entrepreneurs.

Reference List

Andrew J. Dubrin. 1997. Essentials of Management. South-Western College Publishing. Ohio.

Ruta Aidis and Friederike Welter. 2008. Innovation and Entrepreneurship.

Peter F. Drucker. 1986. The Frontiers of Management. Book Club Associates. Kent.

Edward de Bono. 2009. [Video] Edward de Bono on Innovation Vs Creativity how it’s different. Available from:
http://youtu.be/eWM1PK2XrJ4
Accessed on: 19/1/2012

Tuesday 27 December 2011

What does the future hold?

What does the future hold?

It is all very good to have a focus on innovation, but is it necessarily best to be 100% focused on an innovation strategy for all processes in operating an organization?

My answer is no. My belief is as the saying goes ‘too much of anything is not good for you’. When reading through Adair’s book, he talks of how you should ‘manage’ innovation, he says, “Innovation should be both customer-driven as well as ideas-driven” (2009, p, 131).

And it is true if companies are becoming too focused on innovation, then organizations and managers will switch their thinking to concentrate on the concept of ‘building new ideas’, ’new products’, ‘new technology’, new everything. By doing this companies may well loose sight of what the customers want and go astray.

Therefore the solution is to see innovation as an aspect of a bigger strategy. Innovation is recognised to be new, it’s a bandwagon everyone thinks they have to jump on. The way that innovation needs to be managed is carefully, not to lose sight of the sole driver of any organization or profiteering organization… the customer.

It is sure that any modern organization that does not integrate innovation into their strategy will struggle, and is likely to encounter problems as much as an organization which relys entirely on innovation.

Reference List

John Adair. 2009. Effective Innovation. Pan Books. London.

Changing for Innovation

Changing for Innovation

It has been made clear that the world is entering an age where innovation is key. So what exactly encourages us to change? Andriopoulos and Dawson (2009, p, 16-17) identify factors that promote change:

- Government laws and regulations
- Globalization of markets and internalisation of business
- Major political and social events
- Advances in technology
- Organizational growth and expansion
- Fluctuations in business cycles

Innovation at the end of the day is change and what innovation does is it looks for ways to change for the better. There has forever been and forever will be a need for change in order to progress as a society but more in a business sense, progress as an organization. Companies should always take a kaizen approach and look to continuously change to improve. As Rothaermel and Hess (2010) say:

“Continuous innovation is the engine that drives highly successful companies such as Apple, General Electric, Google, Honda, Hewlett-Packard, Microsoft, Procter & Gamble, Sony, Tata group and many others.”

Reference List

Constantine Andriopoulos and Patrick Dawson. 2009. Managing Change, Creativity & Innovation. Sage Publications Ltd.

Frank T. Rothaermel and Andrew M. Hess. 2010. [Online] MIT Sloan – Innovation Strategies Combined. Available from: http://sloanreview.mit.edu/the-magazine/2010-spring/51313/innovation-strategies-combined/
Accessed on 30/12/2011

Global Innovation

Global Innovation


The concept ‘global’ means, “to affect the whole world” (Schwarz, 1992, p, 380). Which makes global operating a complex and powerful concept. Things which happen globally will have an effect on companies acting world wide and the things that these companies do will have the return effect of influencing global markets, globalization can be one of the biggest influences for change (Andriopoulos and Dawson, 2009,p, 16). For example, new technological advances will shape companies all over the world.

One major benefit of globalization is that it drives down ‘economies of scale’ as predicted by Theodore Levitt in the 80’s, as Levitt says below:

“Constantly drive down prices by standardizing what it sells and how it operates. It treats the world as composed of few standardized markets rather than many customized markets. It actively seeks and vigorously works toward global convergence.”
(Bilton and Cummings, 2010, p, 55)

Which means that because of the availability to a bigger market, prices will be forced down because people realise that they can now access the things they need from a wider range of sources. The Internet is a key factor in this process. With the introduction of sites like ‘eBay’ it has now become so easy to buy and sell products at a low price, thus creating a highly competitive market.




As shown in the diagram (Yip, 1989) above in the ‘Appropriate Setting for Global Strategy Levers’ box, there are certain factors that organizations have to possess or have access to in order to implement a global strategy.

So for companies to go global they have to firstly have the want and the need to go global, which are also referred to as ‘drivers’. A company needs a reason to enter global markets, reasons may include, because using global suppliers they can save money, a primary reason is because it opens up the company to dealing to a larger market. Next they need to be able to fund a global operations, now this would have been harder 20 years ago, but because of technological and communicational advances, it is easier to communicate with anyone in the world and to exchange goods/products through postal services.

In conclusion the main factor that needs to be considered is that globalization holds endless opportunities for companies and the organizations should view the global market as a market in its own respect. Yes, it has to be considered that there are added values in some cases and that the rate of change in a global market will be much greater than that of local markets, and yes the cultures will vary across the global market. But the underlying point to consider is that THE MARKET IS BIGGER and by making your products/services available to more people is much more likely to have a greater positive effect for your organization.


Reference List

Catherine Schwarz. 1992. Chambers Pocket Dictionary. Chambers Ltd. Edinburgh.

Constantine Andriopoulos and Patrick Dawson. 2009. Managing Change, Creativity & Innovation. Sage Publications Ltd. London.

Chris Bilton and Stephen Cummings. 2010. Creative Strategy: Reconnecting Business and Innovation. John Wiley & Sons Ltd. West Sussex.

Image available from:
http://businessblog.winweb.com/industry-solutions/ebay-sellertrader/winweb-launches-solution-for-ebay-sellers-and-ebay-traders
Accessed on 30/12/2011

Image available from:
http://cdn.mitsmr.com/files/2008/12/3113-ex2-lo10.png
Accessed on 30/12/2011

Supply Chain Management and Innovation

Supply Chain Management and Innovation


Supply chain management:

“The system of managing all the activities across company boundaries in order to drive the whole chain network towards the shared objective of satisfying the customers. Material (or information) flows through a series of operations in both directions and the principles of operations management apply.”
(Paul Trott, 2012, p, 135)

It is very common for organizations to outsource some of their activities to concentrate on their main products or systems. The model below taken from Trott (2012) shows the relationship between material and information across the supply chain.


The key to the supply chain is making sure that things operate quickly and efficiently, which is what JIT management systems are all about. Now that the world has circum to globalisation, this makes it easier for companies to get hold of goods and materials.

There are obvious advantages and disadvantages to outsourcing via third party partners. The advantages being that those third party partners provide flexibility, take away the extra start up costs for manufacturing facilities, provide the organization with more time for other things, specialised expertise and specialised technologies. With the obvious disadvantages being that there is less control over the third parties, it may cost more in the long run to outsource rather than manufacture products yourself.
(McNamara et al, p,5)

Reference List

Paul Trott. 2012. Innovation Management and New Product Development. Fifth Edition. Pearson Education Ltd. Essex.

Pamela McNamara and Roland Andersson. Innovative Sourcing Strategies. [Online]
Available from: http://www.caplix.com/pdf/innstrat.pdf
Accessed on 30/12/2011

Innovation and the UK

Innovation and the UK


Most of the UK is employed in the service sector, as you can see from the charts above. Working in areas such as; Finance like the ‘Standard Charted Bank’, Insurance like Aviva (formerly known as Norwich Union) and Professional Services (consultancies, etc).



Reference List

http://www.nomisweb.co.uk/published/stories/story.asp?id=20

http://prasadjain.hubpages.com/hub/Top-ten-financial-institutions-of-the-world

http://www.standardchartered.com/uk/en/

http://www.popularsomething.com/2010/01/top-10-insurance-companies-in-world.html

http://www.aviva.co.uk/?source=GB1A&entry=112316&CMP=KNL-google-nud-brand&HBX_PK=aviva_google_exact&HBX_OU=50&gclid=CK7z15_roq0CFZMhtAodWC3Vug

http://www.nairaland.com/nigeria/topic-728662.0.html

http://www.texastermbroker.com/aviva-life-insurance-texas.html

Developing New Products Through Innovation

Developing New Products Through Innovation

What are Process Management Systems?



My idea of process management systems, is that it is the way an organizations runs, through a set policy. Process management systems can be such methods as Just In Time (JIT) manufacturing methods, Frederick Taylor’s work on improving productivity, or Lillian Gilbreth’s studies to improve productivity through the study of time. (Mason, 2011)



In the video above, Ralph Mroz (2009) talks of the need for process management. He describes process management as “a series of steps by which something gets done”. He also talks about how process management is seen as a negative way to get things done in more creative areas such as marketing.

“In creative areas, like marketing, they say, well what we do cant be reduced to a process, it cant be reduced to a series of repetitive steps.”

To be honest I say their point of view, because by putting a cap on creativity, giving it a process will restrict levels of thinking and sometimes it is more important to embrace doing things differently by not always following the rules.

On the other hand, if creative companies want to be innovative, process management systems may well be the key to do just that.


Toyota is the business, when it comes to ultimate process management systems. They work to make their processes the most efficient and lean, based on JIT systems (Toyota Global, 2011). But they are also great in the sense that they are a company who has always welcomed and will always welcome innovation, as outlined by Bilton and Cummings (2010, p, 70) “Toyota is a great innovator because it is bisociative: paradoxically swarming for little increments and pursuing the big breakthroughs”.

Evolution of process management systems over time

- Technology push (1950s)
- Market pull
- Push-pull
- Parallel Processing
- E-Integration
- Network Innovation (2000s)

- Examples (e.g. music and online selling via e-integration)

Product life cycle


The product life cycle is a common tool used in business which shows how a product is introduced to the market and then goes through growth and maturity stages which ends in the diminishing of that product.

There are ways of innovating this product life cycle, for example by finding a new use for a product will take a product from its stage and start growing again, as shown in the diagram below, taken from Kaplan (2009).


Kaplan (2009) gives an example of the Typewriter being innovated into computer keyboards and programmes. Also shown below.


To sum up what this ‘S-Curve’ does. It is a relatively new technique that pushes companies to not just develop new products from old products, but to find new uses for old products, which is exactly what innovation is all about.


Reference List

Wendy H. Mason. 2011. Reference for Business – Process Management. [Online] Available from: http://www.referenceforbusiness.com/management/Or-Pr/Process-Management.html
Accessed on 30/12/2011

Ralph Mroz. 2009. Customer Manufacturing Group – The Necessity of Process Management. [Online] Available from: http://www.youtube.com/watch?v=un3riF1uPvw
Accessed on 30/12/2011

Image available from:
http://www.startrescue.co.uk/blog/toyota-recall-again-but-are-they-alone

Toyota Global. 2011. Toyota Production System. [Online] Available from:
http://www.toyota-global.com/company/vision_philosophy/toyota_production_system/
Accessed on 30/12/2011

Chris Bilton and Stephen Cummings. 2010. Creative Strategy: Reconnecting Business and Innovation. John Wiley & Sons Ltd. West Sussex

Soren Kaplan. 2009. Innovation Point – Innovation Lifecycles [Online] Available from: http://www.innovation-point.com/Innovation_Lifecycles.pdf
Accessed on 30/12/2011

Is the UK using Innovation to its Potential?

Is the UK using Innovation to its Potential?

Below is a list of the top 50 most innovative companies in the world for 2010 (Arndt and Einhorn, 2010). Issued by Bloomberg: BusinessWeek.



As you can see from the list above the most innovative companies come from countries such as; the US, Japan and South Korea. Perhaps this shows that the UK as a culture is not embracing Innovation as well as it could do.

Reference List

Bloomberg BusinessWeek. 2010. The 50 most Innovative Companies 2010. [Online] Available from
http://whyinnovate.co.uk/
Accessed on 27/12/2011

Thursday 22 December 2011

Innovative Leadership

Innovative Leadership

Earlier I talked about innovation only being relative to participative organizations with taking this into mind it eliminates some of the proposed styles of management mentioned in the last post (leadership), like classic theory. It is hard to get the whole company involved with innovation in classic theory because management normally allow most decisions to be made at a higher level, also the organizational is normally involved in industries which will reduce creative thinking (for example production based or factory organizations).


With innovation becoming the forefront of many organizations business models, there comes a need for effective leadership to implement and control these new innovative plans.

The best way to examine what a good innovation leadership style would be like, is to identify the characteristics that the individual must possess in order to be successful. Adair (2009, p, 154) identifies several characteristics a ‘creative leader’ needs to have to be perform, as revised and illustrated in the diagram below.



Reference List

John Adair. 2009. Effective Innovation: the essential guide to staying ahead of the competition. Revised Edition. Pan Books. London

Leadership

Leadership

In a previous post (Culture an Innovation), David Kester talked about how a culture has to be defined from ‘the top’ of organization. So this brings forward the idea of a company having to have effective leadership to manage innovation.

So what is leadership?

A manager can be described as “a leader of an organization”. Leadership dates back thousands of years, so to identify the core qualities of a manager we need to start by observing the earliest leaders we are aware of (Boyett, J et al: 1998: 1).

One of the earliest theories of leadership can be extracted from the bible. Matt 15:14 says, “If the blind lead the blind, both shall fall into the ditch”. This puts forward the basic principle that we need leadership (Boyett, J et al: 1998: 1).

Today we consider other famous leaders to be Julius Caesar (100BC-44BC). He is considered a leader because he led the Roman Empire; he made monumental decisions on war, life and death thus why he is considered a successful leader. These qualities can be related to modern society. For example, a leader needs to be a decision maker, reek with confidence and to accept responsibility for his actions (Encyclopædia Britannica, 2010). Others who showed these qualities as leaders of countries and war are; ruler of the French Napoleon (1769-1821) or British leader during World War II Winston Churchill (1874-1965), (BBC: 2010).


As well as confidence and the ability to make decisions at ease, other attributes have been shown to prove effective leadership. It is a popular myth that there is a direct correlation between physical characteristics and good leadership. “Natural leaders are tall and stand above the crowd like Charles de Gaulle and Abraham Lincoln” (Hannagan, T: 2005: 38). This depicts the idea that leadership/management can only be obtained through genetics and you are simply born to be a leader.

The opposite popular theory is that leadership is met through an individual’s intellect and assertiveness. Ghandi is classed as one of these individuals, because he makes bold generalizations with great confidence and self belief (Hannagan, T: 2005: 39). This theory can be backed up with modern day relevance. It is true that if you wanted to be a leader for the UK, you would have to be a highly educated individual to even be considered to parliament or to be elected.


But it’s not nearly this simple to base leadership on these qualities of intellect, physical attributes, confidence and assertiveness, to be a success manager, because there are exceptions.

Leadership in Organizational Management

Richard Branson is an obvious example for a modern day pioneer of the business world. He never got a degree; instead he went out into the business world and made a name for himself by setting up his own businesses. So it is the experience of doing things and taking risks, which will lead to success. But the question lies in “how was he able to make these right decisions?” He wasn’t educated to make the most logical choices, yes he may have debated decisions of what might be a good or bad decision but I believe that his element of being a successful manager comes from a much deeper aspect, the idea that he was born to be a manager. Malcolm Gladwell is a writer who considers the psychological view of decision-making, he focus’ on how good judgement can be made within a glance. He talks of the unexplained phenomenon of the human minds unconscious and how it reflects our beliefs. Some people are born with the ability of good decision-making. “The adaptive unconscious does an excellent job of sizing up the world, warning people of danger, setting goals, and initiating action in a sophisticated and efficient manner” (Gladwell, M: 2005: 12). This gives the idea that good leadership is down to effective decision making.


Taking into account all these theories of historic leadership and modern day thinking. Business pioneers have generalized 4 categories of management theory that are highly valued and practised in today’s business environment.

The first of these are classical theories, which include scientific management and bureaucracy. The classic theory is an early theory, which exercised the act of discipline in the workplace. It values hierarchy and sees its employees as machines/assets that can only be motivated by money. Taylor (1856-1917) was a major contributor and acclaimed father to scientific management, so discipline and authority can be extracted as necessary factors for successful scientific management practise. (Cole, G: 2004: 3).

The opposite style of management described in Mullins is Human Relations Management. The Hawthorne experiments (1924-1932) paid attention to social factors. Considering if employees were not thought of as machines, but seen as human beings then productivity would improve. Qualities of managers following this style will be; more people related skills, take an interest in the social factors and well being of the employees, they will have good communication/listening skills and follow a more soft style. (Mullins, L: 2010: 53).

Mullins (2010: 57) outlines that there are other management approaches a business can follow; social which is the integration of classic and human relation tactics. Contingency management is another style, a combination of situational variables.

To summarise, leadership is considered differently when though of in business terms or thought of generally. Leaders in a business setting are expected to make good decisions, with successful outcomes, at the end of the day if a CEO doesn’t produce the results he/say will seize to stay in charge at that company. And thus this is what we expect of good leaders in management. We expect our managers to produce results, be supportive in decision making, have a general direction for themselves and the business and develop a strong work ethic for employees and consumers to relate to.

Reference List

David Kester. 2009. Creating a Culture of Innovation. Available from:
http://www.youtube.com/watch?v=KyqHGdIMcas&feature=BFa&list=FL_Ytrb6CZeR0ysQuPenJaeg&lf=plpp_video
Accessed on 22/12/2011

Boyett, J (1998) The Guru Guide – The best ideas of the top management thinkers
Published by: John Wiley and Sons

Toynbee, A (2010) Julius Caesar, Encyclopaedia Britannica [Online]
Available from: http://www.britannica.com/EBchecked/topic/88114/Julius-Caesar
Assessed: 24/10/2010

BBC (2010) Historic Figures – Winston Churchill, BBC [Online]
Available from: http://www.bbc.co.uk/history/historic_figures/churchill_winston.shtml
Assessed: 24/10/2010

BBC (2010) Historic Figures – Napoleon Bonaparte, BBC [Online]
Available from: http://www.bbc.co.uk/history/historic_figures/bonaparte_napoleon.shtml
Assessed: 24/10/2010

Image Available from:
http://www.bushywood.com/winston_churchill.htm
Accessed on 22/12/2011

Hannagan, T (2005) Management – Concepts & Practices
Fourth Edition
Published by: Prentice Hall

Image available from:
http://gandhifoundation.org/
Accessed on 22/12/2011

Gladwell, M (2005) Blink – The power of thinking without thinking
Published by: The Penguin Group

Image available from:
http://www.ecosherpa.com/news/branson-to-fight-global-warming/
Accessed on 22/12/2011

Cole, G (2004b) Management Theory and Practise
Sixth Edition
Published by: Thomson

Mullins, L (2010) Management & Organisational Behaviour
Ninth Edition
Published by: Prentice Hall

Innovative Cultures MUST be Risk Takers!

Innovative Cultures MUST be Risk Takers!

Within my research of innovation in culture I came across a similarity; ‘the notion of risk taking’. And I can summarise from my findings that it is generally thought that innovation and risk taking may well coexist.

So to be innovative, must a company take risks?

A lot of the time, like in Kester (2009), it is said that the creative ideas we come up with have to be given the time to foster and evolve. And when you think of it, risk taking is a process which will lead to innovation. Creativity can come up with the ideas, but taking the risks to spend the money and time on making these thoughts and imaginations a reality, is what leads to innovation.

In the video below, Darrell Bracken (President of Whirlpool Europe) talks about how any organization, especially in management needs to take risks in order to succeed in creating an innovative culture.



“There are certain aspects of a culture that are required to be innovative. If the culture you work in is one where people are scared to death to make a mistake, it makes innovation tougher to draw out”. (Bracken, 2011)

And it is true, if you are in a company which does not accept ideas from lower down in the company, then people are going to feel that their ideas are not valued by the company, therefore the culture is not an acceptable culture for innovation. Management have to let the employees know that they are welcoming ideas for anyone to put forward ideas in the first place, they can’t expect innovation to happen, processes need to be put in place to encourage motivation, as outline in Bracken’s interview with the quote below.

“If you don’t have a system which manages risk well, even if you are in a culture where people are willing to take risks and its ok to take risks, your probably not going to do very well because if you don’t manage risk well, then you go out making a number of mistakes per attempt”. (Bracken, 2011)

Reference List

David Kester. 2009. Creating a Culture of Innovation. Available from:
http://www.youtube.com/watch?v=KyqHGdIMcas&feature=BFa&list=FL_Ytrb6CZeR0ysQuPenJaeg&lf=plpp_video
Accessed on 22/12/2011

Darrell Bracken. 2011. Driving Innovation through Culture. Available from:
http://www.youtube.com/watch?v=P0Bb21gN7yc&feature=BFa&list=FL_Ytrb6CZeR0ysQuPenJaeg&lf=mh_lolz
Accessed on 22/12/2011s

Culture and Innovation

Culture and Innovation

Culture is and always has been one of the most important assets to innovation. Creating an environment which allows for innovation to evolve is necessary for a companies progression in it’s field.

In an interview below, David Kester (CEO of Design Council, 2009) reveals that; every leader must create an appropriate culture for innovation to facilitate.



“That culture is something to so with openness, its something to do with allowing ideas to be fostered, its about allowing creativity to flourish, but also creating controls”. (Kester, 2009)

Culture has to come from the top”. (Kester, 2009)

Kester’s ideas are influential but questionable when he talks about creating an innovative culture having to come from the top. It has been seen before that a culture can be defined and controlled through minority groups, and its seen all throughout society that decisions can be highly influenced by smaller minorities. Therefore I think it is highly questionable and frankly naive to think that an innovative culture has to be controlled dependently through managerial compasses.

I am not saying that it is wrong to control a culture from the top, because a culture is a completely participative process but from all entities. Everyone needs to be involved to create the culture suited best to the company and everyone has their input whether they are low down in hierarchy or not.

I think that management and higher up person’s are more suited to controlling/managing the culture, once it has been created. This will be seen through the way people are disciplined for not following the culture or disruptive behaviour, but also in sieving through the applications of new employees to hire the right people suited to their businesses culture. This idea of innovation being capable in a participative culture comes from Hurley and Hult, “higher levels of innovativeness are associated with cultures that emphasize learning, development and participative decision making.” (1998, p, 42).

Reference List

David Kester. 2009. Creating a Culture of Innovation. Available from:
http://www.youtube.com/watch?v=KyqHGdIMcas&feature=BFa&list=FL_Ytrb6CZeR0ysQuPenJaeg&lf=plpp_video
Accessed on 22/12/2011

Robert F. Hurley and G. Tomas M. Hult. 1998. Journal of Marketing. Vol. 62. Available [Online]:
https://docs.google.com/viewer?a=v&q=cache:lj_19NWt6QUJ:iic.wiki.fgv.br/file/view/innovation,%2Bmarket%2Borientation.pdf+participative+culture+for+innovation&hl=en&gl=uk&pid=bl&srcid=ADGEEShhOfO1p9v7hmSGwp29EBYSFk3YiyCZYGzueTytt2GeBn5TTYem9Y7uEHLrYb9UsmioaU8YEKQXh1JRgYSkKyqlyOPER0BFPpELuAhOQW9I9qQsOYBS_ZoOCFJnBiEJtASFzuP5&sig=AHIEtbQCWlaZfXHK7MVyAxOP2N5O0pEL5g
Accessed: 21/12/2011

Wednesday 21 December 2011

Culture

Culture

Culture is commonly thought to be how people act in a large society, such as western and eastern culture, but the reality is culture is found in any group of people, whether the group situates in school, at home, or at work. Cultures reflect the beliefs and norms of the individuals involved.

It is important for a company to therefore employee the right people who will sit well in their organizational culture. Andriopoulos and Dawson (2009) recognises many different authors definitions on the concept of ‘organizational culture’, I like ‘Van Maanen’s’ (1976) definition which describes organizational culture in simple terms…

…”THE RULES OF THE GAME” (Andriopoulos and Dawson, 2009, p, 253)

To elaborate on this simple definition, what is being said is that each company plays differently internally. People often conform in order to fit in with the people around them.

For a more in-depth definition of organizational culture see Schneider (1988, 353). “The values that lie beneath what the organization rewards, supports and expects; the norms that surround and/or underpin the policies, practises and procedures of organizations; the meaning incumbents share about what the norms and values of the organization are”. (Andriopoulos and Dawson, 2009, p, 253-254)

It is hard to examine an organizations culture by viewing it or talking to individuals, because a lot of values are hidden and not spoken, also managers or people within the company may not be willing to reveal company traits for fear of damaging the company’s credibility.

Instead it is better for one to reflect on their past experiences and think of how they have acted in the past to fit in with others. For me I can see how people around me have conformed in order to fit in with others. When working in a nightclub I found the new girls who came to work conformed to try fit in by wearing tones of make-up and wearing ridiculous sized hair extensions. And as much as they would deny it, it is true to see that they have conformed to fit in!



This portrayal of the stereotypical female has been emulated and catalyst by the media and is now spreading into organizational culture, by picturing women in adverts, magazines, etc all covered in make-up. This says that this is what women/young girls should like and they conform to what is spread in the media. As the ‘media awareness network’ says ‘standards of beauty are being imposed on women’ (2010).

So too a great extent the organizational cultures within bigger cultures have great influence on the participants.

Components of culture

2 important factors within culture are the values and norms that the culture reflects. In business the values of a culture are important, because in some cases customers will only buy into companies, which reflect decent practises. This is better explained through an example…

Say there are 2 companies. Company A and Company B. Both companies sell the exact same product for the same price in the same shop; the products are no different in any way. But Company A decided to recycle all waste and they make a big point of this through marketing. Company B however save money by not recycling. Because Company A recycle, customers who share that value are more likely to deal with that company.

This is seen in the business world in a similar scenario with ‘Marks and Spencer’s’, because they value quality of their food and so overall food tends to be more expensive but because they value quality, this attracts a lot of customers, which allows them to be one of the major leading U.K. supermarkets.



“Marks and Spencer has a formalized ethical supply chain management policy built into company-wide global sourcing policies.” (Sigma, 2001, p, 3)

The norms reflected in a culture are important because the management styles and political games applied will have an effect on how employees will act within the organization. A company with a more democratic approach allows for a more participative approach to business, meaning that if an employee on a lower level wanted to have an input then they would get the chance, but if a company follows a more autocratic approach then this does not allow for creative input from all levels internal to a business.

“By allowing everyone to be a part of the process, this leadership style permits creativity and creative thinking.” (Lalwani, 2011)

Hastings (2007, p. 182)) offers a checklist of factors for effective culture, to incorporate innovation:
- Leadership
- Participation
- Process
- Organizational Alignment

He identifies that “when the process is successful, everyone in the organization understands what the marketing expenditure delivers” (2007, p. 182). But I think that he is being way too short with his checklist, innovation and culture are both complex topics which need much more attention, so if it was myself I would highlight ‘time’ as an important asset to developing and creating an innovative culture.

Reference List


Andriopoulos and Dawson. 2009. Managing Change, Creativity & Innovation. Sage – London.

Media Awareness Network. 2010 [Online] Available from:
http://www.media-awareness.ca/english/issues/stereotyping/women_and_girls/women_beauty.cfm
Accessed on 21/12/2011

Image available from:
http://toys.about.com/od/dolls/ig/Barbie-Pictures/Quintessential-Barbie.htm
Accessed on 21/12/2011

Martin Charter et al. 2001. Supply Chain Strategy and Evolution. Available [Online] from:
http://projectsigma.co.uk/RnDStreams/RD_supply_chain_case.pdf

Image available from:
http://www.guardian.co.uk/business/2010/apr/08/marks-and-spencer-staff-bonus
Accessed on 21/12/2010

Puja Lalwani. 2011. [Online] Available from:
http://www.buzzle.com/articles/democratic-leadership-style.html
Accessed on 21/12/2011

Hunter Hastings. 2007. Improve Your Marketing to Grow Your Business. Wharton School Publishing. Published in the United States of America.

Monday 19 December 2011

Technology Innovation

Technology Innovation

Technology is important in a variety of business sectors. As technology develops, innovative companies will look to have the latest technology to compete. It is often seen that small businesses will struggle to compete with larger companies if they do not implement the latest technologies. Thus technology can create barriers of entry for some industries.

Most large companies (depending on industry) will invest millions into developing their own new technology. For some businesses having your own technology is key to success, because one developed, the company can look to patent their own inventions and if the organization follows up by creating a demand for that invention, they look to make a lot of money.

Wars prove that technology is key to success. “In all of human history nations have strived to be the best armed and have superior technology” (Kessler, 2011).

In a more business related example, the technology for office equipment has developed immensely over the years. Back in the day offices used to occupy ‘Analogue Plain Paper Copiers’, then next came the ‘digital photocopier’, followed by colour copier scanners. Other technologies at the time included laser printing, faxing and scanning. Using all these technologies companies like Xerox, Cannon and Sharp have all developed a new age of printing technology, ‘MFD (Multi Functional Devices) Printing’. What these machines do is they make it possible for an office to do pretty much anything from; faxing, scanning, and copying, all from one device.




This may not seem as glamorous in comparison to other technologies, but nether the less, without the new technology offices all over the world would work less efficiently without their MFD’s! Current technologies are looking into linking these printing devices with the ‘internet interface systems’ and full ‘document management systems’ to more efficient and better productive machines for the future.


Reference List

Alex Kessler. 2011. The Triple Helix Online – Do better weapons win wars? The role of Technology in Warfare. [Online] Available from:
http://triplehelixblog.com/2011/02/do-better-weapons-win-wars-the-role-of-technology-in-warfare/
Accessed on 19/12/2011

Image available from:
http://www.alibaba.com/product-free/104679167/Konica_Minolta_Multifunctional_MFD_s_Printers.html
Accessed on 19/12/2011

http://www.xerox.co.uk/?CMP=KNC-XRX_KW_UK&DATE=03-02-2011&XOGlang=en_GB
Accessed on 19/12/2011

http://www.canon.co.uk/
Accessed on 19/12/2011

http://www.sharp.co.uk/gb
Accessed on 19/12/2011

DIT Documentation Team. 2010. Multi Function Devices: Printing, Photocopying, Scanning. Available from:
http://www.abdn.ac.uk/dit/documents/factsheets/fsgc18.pdf
Accessed on 19/12/2011

Defensive and Aggressive Innovation Strategies

Defensive and Aggressive Innovation Strategies

Developing innovation strategies is important for any company, because innovation strategies will accompany the organizations overall business strategy and help achieve any prospective aims, objectives and goals. Aaker (1995, p. 336-337) identifies that to ‘organize for innovation’, a company must make itself open to change.

These strategies will pin point when and where innovation is to be incorporated to the company and how much of an influence innovation should have on that company.

There are several different types of ‘innovation strategies’. These consist of:

- Protection strategies. Locking customers in. This could be shown in examples like gym memberships. In which I have had bad experiences. Gym’s like L.A. fitness are a prime example of a sneaky company who look to lock people in to contracts and fail to let them out of it without full payment.




- Disruptive Strategies. Often seen in marketing, as a ploy to enter the market. Using strategies such as ‘low pricing’.

- Technology Strategies. Aaker (1995, p. 231-232) says that ‘innovation runs through pre-emptive moves’. So what Aaker is saying is by investing in new technologies and staying ahead of the game, companies are using this innovation of technology advances in order to stay on top. As seen in mobile phone companies and the gaming industry, with companies like; o2, Nokia, Vodafone or Microsoft, Playstation, Nintendo.

- Primarily Innovation Strategies. Focusing on purely innovation, trying to create new concepts, ideas and products in order to grow as a business.

Reference List

David A. Aaker. 1995. Developing Business Strategies. Fourth Edition. John Wiley & Sons Inc. Printed in the United States of America.

Image available from: http://www.google.co.uk/imgres?imgurl=http://www.cambridgeleisure.co.uk/images/la_fitness_photo.gif&imgrefurl=http://www.cambridge-x.co.uk/fitness/&usg=__D9oJcziBt-E5GB2whIk-0ZY4O3g=&h=324&w=309&sz=32&hl=en&start=3&sig2=9BV11NpbLB1W6LJSwYq8SQ&zoom=1&tbnid=U6oD1Vhrx37OaM:&tbnh=118&tbnw=113&ei=NUoUT5_AAurU4QS62vT-Aw&prev=/search%3Fq%3Dla%2Bfitness%26hl%3Den%26gbv%3D2%26tbm%3Disch&itbs=1
Accessed on 16/1/2012

Innovation Strategy

Innovation Strategy

Every organization will have an overall business strategy. Innovation has become more apparent in modern organizations and thus if companies are looking to stay competitive in the future, companies find it necessary to introduce strategies with emphasis on innovation.

Below is a statement taken from ‘principalvoices.com’:

“It has traditionally been a key element of business practice, however, the capacity to innovate has never been at more of a premium then it is in today’s climate of economic globalisation and rapid technology change, where adaptability can make the difference between success and failure."

What the writer reinforces is the notion that companies have to raise levels of innovation in order to compete effectively, and that is more important today than it ever has been.

As I have mentioned before, phone companies, the gaming industries always have to turn out new technology in quick succession in order to compete in its sector. So it is right to say that in certain industries innovation can be more/less important.

Types of strategies (Russell, 1998, p, 1)

Product Evolution
Improvements in products, which can be in the form of:

- New technology
Example: New technology in electrical components allows for tools such as laptops and televisions to become smaller.

- New users (consumers)
Example: New users open up a whole different market, which could change the product to suit the new consumers.

- New use (for the product)
Example: Taking an old product and finding a new use for it.

- New materials
Example: New materials can create a new consumer demand. Cars didn’t start off so lightweight as time has progressed car manufacturers have incorporated lighter weight materials to make their cars faster.

- New trends
Example: Old products being brought back to life. Often seen in fashion, one of the latest being the return of ‘espadrilles’, firstly popular in the 80’s because they were cheap. Now they are seen as fashionable and come at a much higher price. (Anna, 2011)


Reference List

Merrick Russell. 1998. Nine Strategies for Innovation. [Online]
Available from: http://www.intad.asn.au/conference/Russell%202.pdf

Anna. 2011. Fashion News – A mile in our shoes: Espadrilles
http://fashionnews.zalando.co.uk/2011/05/23/a-mile-in-our-shoes-espandrilles/
Accessed on 19/12/2011

Image from:
http://adambarraletsbloodygoodthingstoknow.blogspot.com/2011/10/toms-shoes-buy-pair-and-they-donate.html
Accessed on 19/12/2011

Imagination: The formula for creativity

Imagination: The formula for creativity

Dictionary (1992, p, 444)
“Imagination – (the part of the mind responsible for) the ability to form or act of forming mental images of things, etc. one has not seen or of which one has no direct perception or knowledge.”

I think that imagination is crucial to the formation of creativity and it takes imagination to form these original ideas. The ‘chambers dictionary’ definition reinforces this idea by saying that imagination is needed in order to have the ‘ability to form’ original ideas. I think that the model below reflects my individual perspective on the links between imagination, creativity and innovation.


- Imagination is the basis for creativity
- Creativity uses original ideas to infect innovation
- Innovation is a reflection of original ideas
- Innovation for a company, is when something is new to that company

Gundry (2007, p. 37), in his ‘Opportunity Identification Process’, uses a light-bulb to represent the concept of ‘idea generation’, which is a method transportation in my eyes for imagination. Thus there are theoretical authors which support this notion of ‘imagination is creativity’ which I have suggested.


Berys Gaut on Imagination and Creativity

‘Imagination is used virtually as a synonym for the ability to engage in creative thought’

From Gaut’s article I extracted the sentence above. Gaut agrees with the idea that imagination and creativity are closely interlinked. On the right hand side is the ‘links’ page, where you can access the whole report on the link between imagination and creativity by Berys Gaut. The article gives an in-depth exploration to how the two can be explained.

Gaut posses pleanty of real life examples which gives credibility to how the two concepts interlink. From chess players who use their imagination of what moves may come ahead, to how people within the arts sectors use their imagination in order to be creative in their output. For example a painter is likely to imagine what the results of his painting will look like, and by employing this imagination they are therefore being creative in their work. (Gaut, 2003, p, 276)

This explanation of an artist using his imagination to be creative can be applied to the business world. In marketing many companies have to create storyboards for television adverts and it is the imagination’s of the people in marketing that produce these creative ads. Like the ‘Budweiser’ storyboard example below.



Reference List

Catherine Schwartz. 1992. Chambers Dictionary. W & R Chambers Ltd. Edinburgh.

Lisa K. Gundry and Jill R. Kickul. 2007. Entrepreneurship Strategy. Sage Publication Ltd. London.

Gaut, B. and Livingston, P. 2003. Creativity and Imagination
Available from: http://openlearn.open.ac.uk/file.php/3187/!via/oucontent/course/61/reading6.pdf

Image available from:
http://victoriarenwick.wordpress.com/2011/02/18/chapter-65-inception-in-my-book/
Accessed on 19/12/2011

Image available from:
http://www.flickr.com/photos/steveschoeffel/4277131870/
Accessed on 19/12/2011

Sunday 18 December 2011

Creativity and Innovation: The Links

Creativity and Innovation: The Links

What is the difference?

In some respects people illiterate that creativity and innovation are the same, but this is not true, they play a role in the same field. The best way I can think of explaining it is if you were to think of a rugby team. In a rugby team you have two sets of players; ‘forwards’ and ‘backs’. Now although they are different because the forwards play differently to the backs, they still play as part of the same team. What I am trying to say is that ‘creativity’ and ‘innovation’ are very similar because the outcome of using them is almost the same, but they differ in the way they are played/implemented.




Edward de Bono, in the video above talks about the difference’s of ‘innovation’ and ‘creativity’, giving a clear distinction between the two for business scenario’s.

“Innovation means putting into operation and your organization something which is new for your organization” (Edward de Bono, 2009).

So a ‘new’ concept or way of doing things could be introduced to a company and this is what makes it innovative, regardless of if the concept has been used elsewhere and this is simply an imitation of something that already exists. And it is here where De Bono identifies the crucial distinction between the innovation and creativity.

“Creativity, where you’re generating an idea specifically for your circumstances” (Edward de Bono, 2009).

Therefore it can be concluded from what De Bono is saying that creativity differs from innovation because creativity is an original idea.


So does innovation come from creativity? Or creativity from innovation?


So which way is the ‘right’ way? Is creativity a cause of innovation or an effect of innovation?

De Bono’s explanation would suggest that innovation uses original ideas and that original ideas come from creativity. Some may say that creativity and innovation work like the model I have put together below. This model suggests that innovation can be both cause and effect of creativity.


I have to disagree with the concept of creativity being a result of innovation. I think a better term to use is ‘imagination’.


Reference List

Edward de Bono. 2009. [Video] Edward de Bono on Innovation Vs Creativity how it’s different. Available from:
http://youtu.be/eWM1PK2XrJ4
Accessed on: 19/12/2011

Edward de Bono. 1998. Six Thinking Hats. Available from:
http://debonoforbusiness.com/PDF/Six-Thinking-Hats-Pre-Reading.pdf

What is Creativity?

What is creativity?

When I think of ‘creativity’ in a general setting. I think; art, something different and exploration. When it comes to ‘creativity in business’ I think; marketing, flamboyant personality types and choice. I believe very much that creativity can only be seen in certain departments in an organization (marketing) and in certain types of organizations such as anti-tayloristic viewed companies. As well as creativity only being accessible in certain levels of hierarchy.


Production line based companies will find it hard to integrate creativity for employees further down the hierarchy and those employees may not be willing to contribute ideas of creativity to management, for fear that they wont listen.

Companies that are more likely to integrate creativity into their working model are companies like ‘google’. The BBC done a report into the company to find out how the company gets the creative juices flowing. (As seen in the video below).



“If your ideal workspace includes a slide, a games room, a 'chill-out' aquarium and plenty of free food then you had better get your CV into Google.”
(Jane Wakefield, 2008)

This predominately laid back approach, suggest; ‘in order to be creative a company must give employees the space and tools needed to fuel their minds’.



The video above is of ‘googles – sandbox’ scheme, which showcases all their newest technologies in all major cities around the world. It shows all the new creative inventions the company are working with, proving they set a high standard of new, innovative, creativity.

So… what is creativity?

The dictionary (Chambers, 1992, p, 215) says:
“Creative – Having or showing the ability to create; inventive or imaginative.”

The general definition describes how creativity is defined by being both ‘inventive’ and ‘imaginative’. Innovation has high links to ‘inventive’ factors, as explained previously. Which suggests that ‘creativity’ and ‘innovation’ are interlinked.

Linda Naiman (2010) defines creativity from a business perspective:

“I define creativity as the act of turning new and imaginative ideas into reality. Creativity involves two processes: thinking, then producing.”

Naiman considers creativity as not just a physical object or process and that creativity can come in the form of thinking. This emphasis the need for companies to harness these creative thoughts, which everyone has, and to ‘produce’ these ideas.
Therefore for management to integrate creativity within their organization, they need to find ways of harnessing the thoughts of their employees and produce a physical output of their thoughts.

Gundry
Following Gundry’s 3 domains for creative action (1994), his new book ‘Entrepreneurship Strategy’ (2007) suggests more than just; environment, education and application being needed for creative thinking. He adds that personal interests and serendipity also play roles in creative processes (Gundry, 2007, p. 38-39).

Serendipity, when cut down is interpreted as ‘chance or luck’. And some movements in business are down to good research which reduces risk, but on the other hand some organizations and managers are just lucky.

Gundry (2007, p. 38) gives and example of a women (Ruth Wakefield) who in the 1930’s by pure accident stumbled upon a new recipe, which suggests that new ideas can be accidental.

Personal interests are a less common factor associated with creative factors and more statutory theorists might disclaim this theory. But because people are highly interested in products, pushes them to spend more money and invest in products, thus take more risks… because they believe.

This is very much seen in the show Dragon’s Den on channel 4 (BBC, 2005).

What does creativity do?

Creativity is one of our greatest assets for the future. The world is forever growing more complex; creativity is key to help overcome these problems. Those that use creativity to be productive will have the advantage.

Reference List

Image available from:
http://www.ataups.com/en/ft.htm
Accessed on 18/12/2011

Jane Wakefield. 2008. BBC News [Online] – Google your way to a wacky office. Available from:
http://news.bbc.co.uk/1/hi/7290322.stm

Jane Wakefield. 2008. BBC News [Video] – Google your way to a wacky office. Available from:
http://www.youtube.com/watch?v=hNxW3PfdXwU
Google Creative Sandbox 2011: New York [Video]
Available from: http://www.youtube.com/watch?v=WdCeSkaD1Ms&feature=BFa&list=FL_Ytrb6CZeR0ysQuPenJaeg&lf=plcp
Accessed on 18/12/2011

Catherine Schwartz. 1992. Chambers Dictionary. W & R Chambers Ltd. Edinburgh.

Linda Naiman. 2010. Creativity at work: Articles and tips [Online].
Available from:
http://www.creativityatwork.com/articlesContent/whatis.htm
Accessed on 18/12/2011

Lisa K. Gundry and Jill R. Kickul. (2007). Entrepreneurship Strategy. Sage Publications Inc. London.

BBC. 2005. Dragons Den [Television Show]. Available from: http://www.bbc.co.uk/programmes/b006vq92

Image Available from:
http://www.liberatemedia.com/wp-content/uploads/2008/07/dragonsden.jpg
Accessed on 16/1/12

Saturday 17 December 2011

Significant Innovation

Significant Innovation

Goffin (2005, p, 3) identifies within theory, that there are certain needs which feed innovation.



Innovation plays a huge role in business, no questions asked there.
Some businesses rely on innovation to create and shape their company, through an invention or new concept. Others use innovation in a more kaizen approach, following a continuous movement to better themselves. And this is why innovation is important for most organizations. Organizations need to recognise that by constantly looking for ways to better themselves and re-evaluating the business, they will remain competitive.

Innovation has become such an important objective in companies, that if a business seizes to remain innovative, they will become out of touch with the sector they operate in and more importantly, they will come out of touch with their market consumers.


This is clear in the gaming industry. Nearly each year a new gaming console is brought out from Xbox, Playstation or Nintendo. The market has become so hyperactive with developing the ‘next best thing’ that success or failure is down to innovation. Hence why so much money is poured into R&D within these companies. As identified by Tom Phillips (2011) who reveals that Nintendo are to spend £127 million on a new R&D facility.

What goes up, must come down…

My proposal is that innovation must come to a standstill at some point. History has proven that for every boom in the economy, it can be matched against a bust. For one civilization to prevail, another must crumble. It may just be my personal philosophical outlook. But I believe that continuous innovation must come to a standstill.

Companies such as apple and Microsoft who are always investing in R&D are forcing themselves into a corner. By bringing out new products so quickly, they are competing not only with other companies but also with themselves. There is going to be a point where they cannot bring out a new product as quickly as the last and this will reflect negatively on the company.


Reference List


Goffin and Mitchell. 2005. Innovation Management: Strategy and Implementation using the Pentathlon Framework. Palgrave Macmillan
Available from http://www.palgrave.com/business/goffin/about/1403912602_02_cha01.pdf
Accessed [online] 17/12/2011

Catherine Schwartz. 1992. Chambers Dictionary. W & R Chambers Ltd. Edinburgh.

Image available from:
http://www.mytrendyphone.co.uk/shop/console-accessories-46340s.html
Accessed 17/12/2011

Tom Phillips. 2011. ‘Euro Gamer – Nintendo to spend £127 million on R&D facility’. Available from:
http://www.eurogamer.net/articles/2011-07-01-nintendo-spends-GBP127m-on-r-and-d-facility
Accessed 17/12/2011

Innovation on a different level

Innovation on a different level


Going back to the LEGO Education innovation video (Kragh). The idea that innovation takes place on different levels was made. This is a useful concept that can be used to help identify innovation through major and minor points of view.

This idea of ‘innovation on different levels’ links into different theoretical approaches strongly. Different approaches are:
- Continuous innovation (concerned with smaller changes, ongoing improvements on existing products or concepts to build and better ideas)
- Disruptive innovation (bigger changes, which come with bigger risk to a company)

A company like apple does represent continuous innovation, because they are always bringing out new versions of the iPod, making small changes. With this wider range of products they are able to attract a bigger audience. For example, small changes in colour of the iPod Nano proved popular leading to increased sales.


The reason for Apple taking this less risk prone approach will be because they are such a successful brand, with a product that sells itself, they will not want to take a ‘disruptive innovation’ approach on their products because they put themselves at risk of loosing business. Companies that are more likely to implement a ‘disruptive innovation’ are those which are failing and who need something original to change the face of their company.

A prime example of ‘disruptive innovation’ is seen in businesses who are failing or loosing money and need a ‘turnaround’ to change the outlook of their company, in order to succeed. This was apparent in 2006 where ‘Kraft Foods’ CEO Irene Rosenfeld said, “at that time, Kraft was suffering from stagnant growth, poor organization and little product innovation”.


To revitalise Kraft, Rosenfeld’s strategy strived to invest in new ideas and take a more innovative approach on business. Months down the line, with introduction of more ‘customer focused products’ and reduced operating costs, Rosenfeld reported, “many of its products are rating more highly with consumers, and the company has enjoyed substantial growth in developing countries.” (Tozzi, 2008)

Reference List


Image available from:
http://keep3.sjfc.edu/students/clw04536/e-port/MSTI%20260/defintions.html
Accessed: 17/12/2011

Jacob Kragh. 2011. ‘What is innovation?’ Available from:
http://www.youtube.com/watch?v=iEG8i7kgPb4
Accessed: 17/12/2011

Image available from:
http://www.ipodreviews.org.uk/ipod-nano/apple-ipod-nano-16gb-review/
Accessed: 17/12/2011

Christopher Tozzi. 2007. ‘Chronicle Online – Irene Rosenfeld’. Available from:
http://www.news.cornell.edu/stories/Oct07/Rosenfeld.cover.ct.html
Accessed 17/12/2011

Sculpting Innovation

Sculpting Innovation

“Sculpting innovation is all for explaining the cloud of definitions surrounding innovation and concludes to a personal understanding of innovation as a concept on both business and general levels”.


The dictionary (Chambers, 1992, p, 465) says:
“Innovation – Something new which is introduced.”
“Innovate – To make changes; to introduce new ideas, methods etc.”

In an everyday view, the term ‘innovation’ or to ‘innovate’ is seen as something new. This could be such thing as a new invention, theory or concept. So it is easy to accept that people such as James Dyson, Thomas Edison or Alexander Graham Bell, all showed a firm aspect of innovation through inventing.

However, just because something is not an original invention, does not mean that it cannot be interpreted as innovative… or does it?

Jacob Kragh from LEDO Education, (in the video link) talks about the concept of innovation.



“The majority of things that are going on in innovation are smaller levels of innovation that is leveraging other peoples ideas.” (Kragh, 2011)

In his video, he describes innovation with a high emphasis on ‘creativity’, saying that innovation is not sole to inventions and original ideas, but innovation can be to build upon existing ideas or to do different things with original ideas. In order for innovation to be successful, he says we must work together.

In conclusion the dictionary definition identifies that innovation is only present in new ideas, concepts, etc. But when you go more into the business world, you discover that innovation is more a way of being creative, either with new ideas or reinterpreting old ideas. Overall innovation in a business scenario will not affiliate itself with just ‘new’ inventions and ‘new’ concepts. Goffin (2005, p, 9) identifies that ‘Porter’ and ‘Schumpeter’ use the word new in their definitions of innovation. But it has to be enforced that innovation does not exist in only ‘new’ products or concepts, as Goffin further states, “many commercial innovations are not totally original”.

Think for a second of a phone company. Nokia, O2, Samsung, Vodafone, T-Mobile, the list goes on. All these organizations sell the same things at the end of the day (mobile phone), it’s the small differences which make these companies and their products innovative, not the concept of always inventing something new.


As you can see from the picture above, innovation for mobile phones has developed time and time again. Above are just a few examples of the development of mobiles, what is noticeable is the size of the phone. In this case innovation is in changing something old to make it better.

With all this confusion of the concept of ‘innovation’ poses the question ‘how do we recognise innovation?’

I have already pointed out the innovation is not only something ‘new’ through an invention or original idea, but it can be a reinterpretation of an original idea.

Jacob Kragh brought up the notion of ‘creativity’. ‘Creativity’ is only one characteristic of innovation.
Characteristics of innovation:
- Creativity
- Invention
- Diffusion
- Event
- Trajectory
- Change
- Process
- Context

Zaltman et al (1973, p. 110) in King and Anderson (1995) however suggest that there are 3 main ‘dimensions’ to innovation:

Programmed/Non-programmed. Basically those innovations which are scheduled/discussed in advance. What this method suggests is that innovation can be planned or it can be a surprise and build upon an idea. Maybe this idea suggests that innovation is ‘free-flowing’ and not necessarily structured?
Instrumental-ultimate. Described as “whether innovation is introduced as an end in itself (ultimate) or as a means to facilitate the adoption of a further innovation (instrumental) (Zaltman, 1973, p.110-111).
Radicalness. Which Zaltman identifies ‘innovation’ as a ‘risky concept’. Which in some cases is fair, but can be scrutinized because if research shows that innovation is clearly not a risky option and will only do good for company, there is only minimal, if not any risk involved in decision making.


Reference List

Image from ‘The Telegraph – London Ice Sculpting Festival 2010 at Canary Warf’ Available from:
http://www.telegraph.co.uk/news/picturegalleries/uknews/6998461/London-Ice-Sculpting-Festival-2010-at-Canary-Wharf.html?image=6
Accessed: 17/12/2011

Catherine Schwartz. 1992. Chambers Dictionary. W & R Chambers Ltd. Edinburgh.

‘Ingenia - James Dyson on Innovation’. 2005. Available from:
http://www.ingenia.org.uk/ingenia/issues/issue24/dyson.pdf
Accessed: 17/12/2011

Lee Krystek. 2005. ‘Who invented the lightbulb?’ Available from:
http://www.unmuseum.org/lightbulb.htm
Accessed: 17/12/2011

At&t. 2011. ‘Inventing the telephone’. Available from:
http://www.corp.att.com/history/inventing.html
Accessed: 17/12/2011

Jacob Kragh. 2011. ‘What is innovation?’ Available from:
http://www.youtube.com/watch?v=iEG8i7kgPb4
Accessed: 17/12/2011

Goffin and Mitchell. 2005. Innovation Management: Strategy and Implementation using the Pentathlon Framework. Palgrave Macmillan
Available from:
http://www.palgrave.com/business/goffin/about/1403912602_02_cha01.pdf
Accessed: 17/12/2011

Image from ‘Celnet Mobiles’ Available from:
http://www.celtnet.org.uk/mobile-phone/mobile-phone-information.php
Accessed: 17/12/2011

Nigel King and Neil Anderson. 1995. Innovation and Change in Organizations. Routledge. London.