Strategic management assignment help on: Innovation issue in an entrepreneurial organization
Q1. Select a key “innovation issue” that you believe an entrepreneurial organization needs to address to be a commercial success. Discuss the impact or effect of this issue on the innovation process. Using at least three articles or readings studied this semester, outline possible strategies that can be used to manage the issue identified.
Ans1. One of the key innovation issues which would lead to a success in the organization would be through product innovation. Various innovations in the product would help the organization to provide their customers with high quality of products (Archibugi & Lundvall, 2001).
Hence, innovation has a potential scope & would also impact the success of the organization. There has been a rapid innovation in the field of computers as well as telecommunication. The rapid improvement in the same has led to a success of the organization. With the help of the innovated technology an organization would be able to achieve sustainable competitive advantage over the other firms pertaining in the market (Evangelista, Sandven, Sirilli & Smith, 1998).
The impact or effect of this issue on the innovation process could be understood as under. The major impact of innovations could be seen through the lucrative arrangements such as new production line, high levels of growth & decline in the number of organizations. Innovation plays a vital role in increasing the growth levels, widening of the scope & looking for various opportunities which would help the organization in order to enhance as well as establish its operations all across the globe (Fulton, 2008).
The impact of innovations could also be seen by the increased the competitiveness which might be based either on cost or the up gradation of the technology. This would help in matching up with the forecasted demands which would create a pull effect & would lead to the growth in the quantity demanded. This would help the organization in order to sustain in the highly competitive market & attain certain levels of advantage (Archibugi & Lundvall, 2001).
Various surveys & studies have shown that, the firms who practice innovation have a great impact upon the performance as compared to the other or the non innovative ones. In order to see whether the impact of the innovative firms is leading to certain amount of success or not could be done with the help of the thorough analysis (Evangelista, Sandven, Sirilli & Smith, 1998). The impact could be seen with the help of the number of employees as well as the amount of profit which the company generates as compared to the smaller & less innovative companies. The direct impact & effect of the organization could be seen within the industry it exists (Archibugi & Lundvall, 2001).
The impact of innovation in the firms could also be seen with help of the technology which is being used by the organization. Use of high – tech technology would help the firms to innovate their product on regular basis which would help them in order to expand their operations as well as increase its market share (Evangelista, Sandven, Sirilli & Smith, 1998). Use of better technology would help in the reduction of the costs, enhance the production line in the upcoming markets & decrease the number of competitors by manufacturing high quality of products in order to meet the demand of their clients. On the other hand, the non innovators or the firms which do not practice innovation would survive by producing fewer amounts of goods in order to meet the regular demand of the clients & would disappear when the demand diminishes (Evangelista, Sandven, Sirilli & Smith, 1998).
Thus, it could be concluded that the innovative strategies which are being used by the organizations in order to have an added advantage over the others should be analyzed by keeping in mind various techniques as well as the market context (Fulton, 2008).
Q2. “Barriers to imitation are never needed if you are a good entrepreneur have the ability to appropriate value from an innovation”. Do you agree or disagree with this statement. Using innovations that you have studied this semester discuss the different types of barriers that entrepreneurs have used to protect their innovations. Select one of these innovations and the barriers that have been used to protect it and discuss how effective these barriers have been in preventing imitation of these innovations. Are barriers sometimes necessary?
Ans2. “Barriers to imitation are never needed if you are a good entrepreneur have the ability to appropriate value from an innovation”. The leading enterprises as well as big business houses use various barriers to protect the innovations which have been done by them by conducting in depth research & development (Fulton, 2008).
Yes, barriers are necessary in order to protect the different types of innovations which have been done by the company in order to attract their customers & full fill their requirements, needs. The big enterprises generally put barriers on the one of the two core elements i.e. Patents on technology & protection of the content. The first barrier i.e. barrier on technology means that the various innovations which have been used by the enterprise could be blocked & nobody apart from that particular enterprise would have a control over it (Cooper, 1999).
Proper utilization of the copyright as well as patents would serve as the two basic barriers in order to protect the innovation. Microsoft has been referred to as one of the leading company which believes in various types of innovations. One of the study conducted states that in spite of dominating in the number of patents, Microsoft lags far behind Apple in case of innovation. Microsoft has been referred to as the third largest company granting patents in the US market in the year 2010, leaving behind the various other big companies such as Samsung, IBM, Apple, Hewllet Packard, etc (Evangelista, Sandven, Sirilli & Smith, 1998).
Being the third largest company in the US market, Microsoft lags far behind Apple in case of producing innovating products. Apple has captured a huge chunk of the market by manufacturing highly innovative products such as i-pod, i-pad, etc. Microsoft is not in same league as compared to Apple as it does not manufacture innovative products (Cooper, 1999).
Though, Microsoft produces less innovative products, still it uses certain barriers to protect its innovations. The company uses the software patent so that only Microsoft would be able to use the innovation (Jolly, 2000) which is being made by them. Such type of software patents would help the company in order to keep its innovation original & novel. Implementation of the software patent would benefit Microsoft & various other big companies in disseminating the innovation (Fulton, 2008).
The software patent would help the companies to put a barrier & protect their innovation which would help in the ongoing growth of the organization which would further lead the company to grow at a stipulated rate & be protected from the various other innovations & monopoly (Drucker, 2006).
One of the major disadvantages of the barriers to protect the various types of innovations is that, in order to invent & implement such type of barriers huge amount of invests are required hence, such type of barriers are majorly used by the big companies such as Microsoft, etc & the smaller firms have to suffer a lot. Such type of barriers also helps in blocking of the new entrants in the most effective as well as efficient manner (Archibugi & Lundvall, 2001).
Another method of protecting the innovations by the big corporate is by posing copyrights on the various inventions which the company has created in order to have an edge over others (Jolly, 2000).
A study conducted by leading web logger’s states that there are 5 top barriers to innovation. These would include the following:
Þ Be deficient in the innovative process
Þ Lack of focus
Þ Lack or resources such as time, staff, etc.
Þ Lack of new ideas
Hence, we can say that the barriers have been quite effective in minimizing as well as protecting imitation of the innovation.
Q3. “Innovation is the specific tool of entrepreneurs, the means by which they exploit change as an opportunity for a different business or a different service.” Select an innovation that you have studied this semester. Provide an analysis of the key factors that explain the success of this innovation, and identify what you believe are the five most important entrepreneurial lessons arising from the above analysis that could be applied to other new ventures or opportunities.
Ans3. “Innovation is the specific tool of entrepreneurs, the means by which they exploit change as an opportunity for a different business or a different service”. Innovation refers to one of the most essential tools which would help the organizations in order to attain sustainable competitive advantage (Drucker, 2006). There are various innovative tools which have been used by the organizations in order to be at the top & satisfy the needs as well as the requirements of its customers (Fulton, 2008).
Innovation refers to a strategy which help in the creation of new opportunities would as well create new approaches as well. Innovating a product would enhance the quality as well as its utility (Jolly, 2000).
One of the recent innovations which have been done by IBM in order to reduce the power consumption by introducing one semiconductor wafer etching at the 22nm level. IBM has come up with a technology or a methodology which would help them in order to use the knowledge in various streams such as Mathematics, virtual modeling, lithographic techniques etc. Some of the new innovations by using the NAND flash memory, memory cards of high storage capacity would be used (Drucker, 2006).
The innovation made by IBM has been designed & would be fitted in the laptops, PC’s, video games as well as high end cell phones which would help in minimizing the power consumption of the same (Fulton, 2008).
There is various success factors which could be identified in reference to the innovation made by the organizations can be enumerated as under:
Þ Seek differentiated, superior products
One of the major reasons which would lead to a success while innovating a product would be to seek superior products i.e. supreme quality & a differentiated product which would be of some help & benefits its customer at large (Archibugi & Lundvall, 2001). The innovated product would have high success rate as compared to the normal products, captures high share in the market & would also lead to an increase in the profitability of the organization. Such type of products would also meet the needs & specific requirements of the customers (Evangelista, Sandven, Sirilli & Smith, 1998).
Þ Demand sharp, stable and early product definition
With the help of the innovation of the product, the target market, its positioning, features as well as the benefits could be seen in a most specified manner as compared to the other (ordinary) product (Jolly, 2000). By innovating a product, the product would be able to create & define its market where the product would be sold. This would serve as one of the critical success factors of innovating the product (Morris, Kuratko & Covin., 2011).
Þ Build an international orientation into your new product process
By making innovation in the existing product, the product becomes new & serves the requirements of its client. While conducting the innovation process, an international orientation should be established. This means that the innovations made in the product should also serve the requirement of international clients & not only focus upon the domestic ones. The design, features as well as the benefits earned from the innovated products should be at par the international products of the similar kind (Evangelista, Sandven, Sirilli & Smith, 1998).
A global direction means that various new, international processes should be utilized in order to create a novel product which would the international requirements & would be at par the taste of the international customer/client as well (Archibugi & Pianta, 1996).
The five most important entrepreneurial lessons arising from the above analysis that could be applied to other new ventures or opportunities could be clubbed under the following heads. They are as under:
Þ Lesson 1: Cast the net wide to source opportunities
By innovating a particular product, the first lesson which should be learnt would be to widen its approach, scope & opportunities by looking in to the various other markets, firms, etc. The company should always work upon their mission, vision, values as well as the culture in which the company resides (Cooper, 1999).
Fair research & development should be practiced which would help the company in order to engage itself & be a part of the distributed knowledge. It must be noted that, all the investments which is being made by the organization in order to carry out the innovation process should be realized quickly (Archibugi & Lundvall, 2001).
Þ Lesson 2: Metrics drive success
The second lesson which is to be learnt from the innovation strategy would refer to metrics drive success. When a company decides to innovate its product, it seems to be like a target for the company which is to be achieved & due response to be demanded form its clients. It should be noted that, the company should focus on dividing rather than multiplying if it wants its business to grow in the near future (Cooper, 1999).
Þ Lesson 3: Deploy the right dedicated resources
The third lesson refers to deployment of the right kind of resources in order to innovate the product in the most effective & efficient manner. It must be noted that, the businesses today should generate new ideas as well as manage the finance in the most appropriate manner. A focused as well as an innovative team would be required so that new, novel ideas could be generated which would help the organization in order to have an edge over the others (Morris, Kuratko & Covin., 2011).Þ Lesson 4: Spinning straw into gold takes time
Innovation refers to one of the toughest jobs which create an opportunity for the company to rise & capture a chunk of the target market. It must be noted that, the company should know the right time i.e. when to conduct the innovation process. The companies should act sensibly & create competencies while innovating the product (Cooper, 1999).
Þ Lesson 5: Properly configured governance de-risks the innovation process
The last lesson to be learnt while innovating the product would refer to the risk factor which would be involved in the entire innovation process.
The lesson that would be to learnt in this context would refer to the appropriate authority, portfolio management & accountability of the various risks which would be involved in the entire innovation process (Archibugi & Pianta, 1996).
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