This assignment asks you to demonstrate your knowledge and understanding of the role of creativity & innovation in business organisations by outlining a proposal for a specific innovation (event, product, service, etc) that builds from a detailed analysis of your chosen organisation and offers a convincing rationale in a wider global business context.
You will do this by;
- Conducting an analysis and evaluation of the organisational climate & culture and innovation processes of a chosen business organisation
- Using your creativity to generate idea(s) for the implementation of innovation tied to the staging of a future Olympic event (see Formative Project 2 for an outline)
- Situating your idea within a broader strategic vision for the chosen organisation, demonstrating knowledge and understanding of theoretical and practical aspects of innovation and strategy.
This paper discusses the innovation management both from an entrepreneurial angle and knowledge management for the growth of a business organization. Entrepreneurship and knowledge work hand in hand in driving the economy of an organization. The main aim of the paper is to review the innovation activities of the organization for the development and use of the techniques in order to manage innovation in both a knowledge and entrepreneurial driven economy. The paper shows the different innovation techniques that when implemented can increase the economic growth and competitive nature of the business organization. It will also focus on the individuals who enforce the knowledge and entrepreneurial capabilities in order to manage them to develop a competitive advantage Drucker (1969).
For our case study, we used the innovation management techniques on Trust Limited Company which is a startup that aims to provide financial solutions to the public in terms of loans. The company is under immense competition from other larger financial institutions offering the same service, thus making it the perfect choice to implement the techniques and gauge its success.
We attempt to apply the entrepreneurial and knowledge model as a proposal. Our method is based according to innovation management ability of the entrepreneur to use knowledge to:
- Identify employees with potential and help them develop it
- Create different opportunities for the employees to explore
- Monitor the growth and development of the employees gradually
- Create a competitive working environment in order to monitor individual performance.
We reviewed the objectives of the company in order to develop a culture of innovation in order for the business to survive the threat posed by other related businesses in the financial sector. The knowledge and entrepreneurial model will ensure the long-term survival of the company in the current economy. The idea of knowledge as a resource has been supported before by Machup (1962). He suggested the growth of a business depended on the knowledge of its workers and the organizations involvement in nurturing the resource of knowledge which replicates itself in terms of entrepreneurial capabilities through innovations.
For the new model to work, it requires to go beyond the complex and traditional nature of measuring the growth of an organization in order to search for entrepreneurial skills and knowledge. The entrepreneurial skills once found form the employees; it can be developed to change the concept of the firm and the way it competes. Unlike the olden days where the performance of an organization was based on its resources at hand, nowadays times have changed and it all depends on what the organization can do with the little resources at hand. Most of the innovations in the financial industry come from knowledge and entrepreneurial capabilities of the employees. According to Barbieri & Alvares (2003) “Inventing is essentially something human” hence the need for an intimate relationship with the employees in order to realize the objective of the organization.
The model capitalizes on the knowledge of the workers through creativity in order to make innovations. Human potential is at the core of the survival of the organization in a rapidly changing, globalized, and competitive financial market. The main objectives of the paper are to provide a working framework for the development and management of innovation which can be adopted by other organizations. It also aims to analyze the contribution of other key players in the promotion and use of such a model. Lastly, the paper aims to provide the firms with innovation management techniques through investment in the knowledge and entrepreneurial skills of its employees.
According to Mclntosh & Arora (2001) In order to harness the strength and develop the strategies for innovation an organization must foster an optimal working environment which is open to change and gives time to review the impact of the plan. Based on this analysis, our knowledge and entrepreneurial model attempts to make changes in the organization through assessments and then reviewing of the impact that the model left on the organization. Based on the model, we have listed some of the techniques employed in the model. The model uses a problem solving technique as advised by Dosi (1982).
Development of Assessment surveys
The first concept is to test the level of the innovation among different key players in the organization ranging from individuals, mid-level managers and the executive. The survey questions are focused on determining the state of an organization’s innovation culture. It tests their comments on innovation as an integral part of the organization. It also sees the commitment of the executives in improving the working environment in order to realize innovation.
Leaders are also questioned on their understanding of factors that contribute to the successful leveraging of innovation. The results of the survey will be used in the analysis in order to determine a better innovation technique in the future that the organization can adopt.
Before handing out the survey, it is important to provide information on the competencies of the innovation. This would help in the future to detect requirements and development actions for making assessments in order to detect interventions for the organization to encourage the innovation culture in the workplace.
After establishing the innovation culture of the organization and gauging it, it is time to implement the five elements of the knowledge and entrepreneurial model which include: initiative, creativity, networking and teamwork.
- Creativity: Making the employees think beyond the traditional ideas used by the organization. This includes analysis of the key areas greatly affected n the organization. Using the knowledge, to generate alternatives that would replace the others in terms of products and services. Also, when it comes to developing meaningful relationships with customers for value added services.
- Initiative: Encouraging employees to take up decision especially through operational ideas that are aimed at creating a positive change in the organization. This is by creating a proactive working environment where the ideas of the employees are considered during implementation of policies for the organization.
- Teamwork: This by the organization linking employees together to form fruitful relationships in order to shared ideas concerning changes. And also, to work together in assisting each other to finish work on time. This helps especially when the workers are brainstorming to form new innovative ideas to revolutionize the work place.
- Networking: This is the reliance and cooperation with other external sources in checking out how their models works for them and if there is need to borrow some concepts. This will result in creating a common ground where challenges met by the organizations can be tabled out in order to form a new innovative solution.
- Critical thinking: This where the employees analyze the ideas put forward by other employees in terms of the advantages and disadvantages. They also share in on the risks involved when it comes to implementing the ideas. They also foresee how some of the ideas will develop in the future.
- Identification of gaps
This would help in establishing weak points in which derail the services offered to customers. Complaints by customers can be helpful in determining which sector is most affected. The knowledge and entrepreneurial method can then proceed to select members with the knowledge capabilities to solve some of the issues raised. The problems can be employed by the techniques above of initiative, creativity, networking and teamwork. The gaps can also be established though the assessment survey offered to the employees. This can help in developing the improvement areas in the innovative culture.
The approach shows some of the strategies earlier put in place that are not working now. In case the results are not what they had been expected, changes can be made early to fill the gaps and reduce the strain on resources and time. Also, the implementation of the improvements suggested by the employees improves the innovative culture in the working place.
STRATEGY AND VISION
In order to apply the knowledge and entrepreneurial model, we must first carry out an assessment of the organization in order to find out the existing innovative culture and the innovation system currently applied. Then the results are compared with the Innovative Transformation Action Grid in order to identify gaps and improvement areas. The improvements are implemented forming the new innovation system of the organization.
Andrade (2009) after a specified period of time, another assessment is carried out to evaluate the impact of the implemented improvements on the current innovation system. The results are compared to the Innovation Transformation Action Grid (ITAG) in order to check their progress. Once a higher impact concerning the improvements is identified, another innovation implementation steps is developed for the organization to implement Ries (2011). This approach helps establish the best innovation system that can work for the organization for a long time. The models give us a better understanding of the customer’s insights and the right set of employees with capabilities to achieve the objectives of the organization.
The process will create an optimal working condition that supports new ideas. It will strategize the way employees related to each other as mere work mates but into a high energized team that is only on the lookout for new ideas that will revolutionize the work place. At the end, the model hopes to increase the turnover of the organization through the creation of new products and services to the consumers. It also works to shift the innovative focus evenly during changes with new products and services to create a clear interdependence in the top priorities of the executive leaders. The models want to make the leader aware of the importance of innovation for the performance of the organization against its competitors.
The vision of the model is that organizations will start seeing employees as investments and resources that can be utilized to improve different sectors of the organization. They can use the knowledge to stabilize the economy and survive at the face of competition. Knowledge and entrepreneurial skills play a huge role in fostering innovation. They a production factor and can be approved by the continual advancements in technologies all aimed at improving the services and products offered to customers.
The paper ascertains that the proper use of the innovation management techniques assists the organization develop new technologies that improve products and services offered as well as changes in the organization generally. Other organizations can use this model in order to increase their levels of competition and introduce new technologies Freeman (1997) to improve customer satisfaction. By highlighting the different stakeholders, the model can be used by the regional government in order to promote global networking with other stakeholders worldwide in order to promote exchange of knowledge and technical know-how.
The paper also hopes to shift the focus of organizations on resources, products and process and focus mainly on the human knowledge and entrepreneurial skills. When the innovation management is focused on people we can make numerous improvements on the activities of the organization as well as changes. Some of the influential factors that determine the decision of an organization when it comes to innovation management ought to change. The organizations also need to change their way of thinking and develop new attitudes and behavior towards the potential of employees. The model once implemented will maximize results and make employees indispensable. Phaal (2006) the knowledge and entrepreneurial model aims at turning the problems faced by the organization into opportunities to be explored in the future. Organizations should start to invest in their employees as a management and innovation model.
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