Innovation Management asm1 SEM B 2022. I got DI (77,3%) in the sem B 2022, marked by Todd RThis is my own individual assignment. Please do not copy or reuse it for any commercial purpose. Be careful of plagiarism.
1 Table of Contents I Introduction Innovation is everywhere It's in the media, IT, advertising, etc It's the most frequently debated issues in business, economics, and management Innovation helps businesses adapt, survive, and prosper Innovation is "essential" to organizations' and nations' production and productivity (Demircioglu et al 2019) In the body paragraphs, I shall prove my agreement with Tidd et al (2005).'s assertion that innovation is "complex, uncertain, and almost impossible to manage" by applying the ideas and concepts from the first four modules and giving scholarly and empirical evidence to support my position II Main arguments: The nexus among creativity, innovation, and entrepreneurship: Creativity, innovation, and entrepreneurship are interconnected Nevertheless, creativity precedes both innovation and entrepreneurship (Zhou 2015; Agarwal et al 2022) There is a saying from Theodore Levitt that ‘Creativity is thinking up new things Innovation is doing new things Meanwhile, entrepreneurship is the implementation of innovative ideas to realize not only their potential financial value but also social or cultural (de Waal 2016) 2 Figure 1: Creativity’s influence on ideation, innovation, and implementation (de Waal 2016) Figure illustrates creativity as a facilitator influencing every phase of the entrepreneurial process where creativity leads to ideation may be considered as the beginning A single or more creative idea might comprise an innovation Innovation without creativity is impossible However, innovation can be without implementation This may happen when no effort is made to realize an innovation's potential value, such as in many R&D laboratories where ideas are born but not all of them can be commercialized due to various reasons Evidently, Tata, an Indian automobile manufacturer, launched the AirPod in 2012 to reveal its aim to create an air-compressed vehicle A joystick would be used to operate the vehicle, which would weigh less than 907kg However, technological obstacles in making the automobile commercially feasible have impeded production, and the concept has sunk into oblivion (Hotcar 2018) Figure 2: Tata Airpod prototype On the other hand, entrepreneurship is reflected by the last phase (implementation) According to Lasrado (2019) Innovation and entrepreneurship are closely associated and essential to organizational success and sustainability in today's dynamic and changing environment In real life, the entrepreneur Jeff Bezos- the founder of Amazon which is the th most innovative company in the world (Forbes 2022) has once said “What is dangerous is not to evolve.” While normal humans are change-resistant Jeff Bezos fears remaining stagnant the most His desire to push the boundaries has earned Amazon.com a reputation as a dynamic, constantly evolving business Amazon began by selling only books but 3 has continuously expanded since its foundation Today, it sells virtually everything, but it also manufactures its own products, provides a variety of digital services (Schneidies n.d.) Therefore, innovation is like a bridge between the two banks: creativity and entrepreneurship, which some choose to cross while others wander with their unrealized concepts In other words, creative ideas offer a platform for innovation, but for innovation to be successfully executed, many resources are needed (Ghosh 2015) Overall, creativity is a diffuse, complex term and innovation also shares this complexity, while the latter involves commercialization and effective execution of innovative ideas (Schilling, 2006) Creativity and innovation at the individual and team level: The Componential Theory of Individual Creativity comprises three essential components of individual (or small team) creativity: Expertise, creative thinking, and intrinsic motivation (Amabile 1997) Creativity is when people's talents coincide with their biggest intrinsic interests Figure shows the "creativity intersection." where factors constitute individual creativity, which will be further discussed in paragraph Figure: 3: Factors of individual creativity On the other hand, beyond individual, Byron (2009) claimed that although creativity cannot be explicitly taught, it may be absorbed through participation in creative activities with others (Amabile and Pillemer 2012).T Innovation and creativity in a team environment required three core competencies: for collaboration purpose, (1) creative abrasion, or the ability to generate ideas 4 through discourse and debate; discovery-driven learning, (2) creative agility, or the ability to test and experiment through rapid pursuit, reflection, and adjustment; and integrative decision making, (3) creative resolution, or the ability to make decisions that combine disparate ideas (Hill et al 2014) Hence, ensuring psychological safety and trust among team members is crucial for facilitating these factors for the team's success (Reina et al 2017) Without trust, arguments and confusing facts are more likely to be misunderstood, leading to undesirable team behaviors (Salas and Burke 2005) Even though Tuckman's stages of team formation clearly divide the team-building process into distinct phases with forming, storming, norming, performing and adjourning, working with unknown individuals is always met with reluctance (Fapohunda 2013) This is manageable in the long term, however, requires a huge amount of time, which in today's era of unprecedented external environment change calls timing efficiency into doubt (Nezamaykin et al 2019) Evidently, Borders Books ignored the evolving book industry for years They waited too long to release e-books and invested too much in CD sales Borders was constantly behind "the next great thing," and their massive debt forced them to liquidate 659 outlets and ultimately went out of business in 2011 (Bomey 2011; CMOE n.d.) Therefore, innovation and creativity at the individual and team level are challenging to manage and uncertain in terms of time efficiency owing to the rapid external factors change, despite their long-term effectiveness 5 Figure 4: Border Books store close 6 Creativity and innovation at the organizational level: Creativity and innovation are essential to the success of organizations and the well-being of their personnel (Mumfold and Todd 2019) While individual and team creativity is an essential source of innovation in organizations (Amabile 1997), the development of innovation is influenced by the following three elements: (1) Organizational motivation to innovate – the fundamental attitude of the organization toward innovation and the enterprise-wide support for creativity and innovation, (2) Resources - all accessible organizational resources utilized for creative labor and innovation, (3) Management practices that foster and encourage creativity and innovation within an organization When combining the factors of individual and team level creativity to the innovation diagrams at organizational level, we have the cycle like figure below Figure 5: The cycle of individual creativity and organizational innovation However, while several tools and techniques have been discovered to manage the innovation process, organizations, especially big ones, continue to struggle to integrate knowledge and coordinate across enterprises in ways that are necessary for the development of continuous streams of innovation Many organizations are 7 struggling to integrate these competencies into their organizational strategy on a consistent basis (Mumford and Todd 2019) Take an example of companies such as Woolworth, Montgomery Ward, Borders Books, Blockbuster Video, American Motors, and Pan Am Airlines, who were formerly "dominator" in their respective sectors, were brought down by more innovative rivals Their declines did not occur overnight, but over a period of decades But the damage was done as soon as innovation was squeezed from their firms (Deeb 2014) As a result, in today's complex and rapidly changing market, organizational management of creativity and innovation is always under pressure and challenge from rivals (Mumford and Todd 2019) Consequently, the mission of maintaining competitiveness makes managing innovation within organizations almost impossible Argue the factors related to innovation typologies: When we hear the word "innovation," we typically think of disruptive innovations presented to the market by creative inventors and entrepreneurs However, the product life cycle suggests that it is not unidimensional, instead there are numerous types of innovation (Torugsa and Arundel 2016; Moore 2008) (Figure 6) 8 Figure 6: Innovation typologies based on product life cycle model These kinds of innovation are categorized in four different zones According to Moore (2008), In the Product Leadership zone, new products and services are developed, innovation should concentrate on creating superior goods and pinpointing the "sweet spot" of client demands In the Customer Intimacy zone, products and services are well-established, and the focus of competition is on customization that will steal market share from rivals The Operational Excellence zone is also concerned with existing products but focuses on the supply side of creating and delivering them It requires process innovation, cost reduction, and integration In the Category Renewal zone, enterprises must gradually phase out products that have reached the end of their life Companies should seek strategies to reenter the Product Leadership zone with replacements for declining products Figure 7: Four innovation zones However, without careful development and planning, the life cycle concept is more deceptive than effective Moreover, businesses cannot accurately determine which phase of the product life cycle the product is in (Baker 2001) All aspects impacting a product's life cycle are always changing, hence its duration is unpredictable Changes in production costs or a drop in consumer demand due to rival products may lengthen product life cycle phases For example, if a 9 corporation bases its decisions on the product life cycle curve, a decline in sales may lead them to feel their product is approaching the decline stage and spend less money advertising it, while the opposite tactic might boost market share and sales Therefore, it is not easy to manage innovation by just basing on the product life cycle model, instead choosing the ideal innovation type to develop and focus on is challenging, which requires sophisticated insight of external factors and considerate preparation III Conclusion: In conclusion, I agree with Tidd et al (2005) that innovation is complex, uncertain, and almost impossible to manage Applying the ideas and concepts of the four modules, together with further research and evidence on innovation "victims" such as Borders Book, enables me to see that staying innovative is essential for business survival, and it must be done in a timely manner Moreover, as creativity, innovation, and entrepreneurship are interrelated and continuously impacted by unpredictability in the external environment, their management is becoming exceedingly challenging 10 10 IV References Agarwal, R, Patterson, E, Pugalia, S & Green, R 2022, Innovation., Taylor & Francis Group, Milton, accessed 21 July 2022 < https://ebookcentral.proquest.com/lib/rmit/reader.action?docID=7042399> Amabile, T M (1997), ‘Motivating creativity in organizations: Doing what you love and loving what you do’, California Management Review, vo 40, no 1, pp 3958. Amabile, TM & Pillemer J 2012, Perspectives on the Social Psychology of Creativity, The Journal of Creative Behavior, Vol 46, Iss 1, pp 3–15, Creative Education Foundation, Inc, accesses 24 July 2022 Byron 2009, Byron, K (2009) The Creative Researcher In, accessed 22 July 2022 Baker, M 2001, Marketing Critical Perspectives on Business and Management, Routledge, accessed 26 July 2022 Bomey, N 2011, 'Ann Arbor bookstore chain files for Chapter 11 bankruptcy', The Ann Anbor News, accessed 26 July 2022 CMOE n.d., Teams That Failed to Stay Afloat (And What Sank Them), CMOE website, accessed 23 July 2022 Demircioglu, MA, Audretsch, DB & Slaper, TF 2019, ‘Sources of innovation and innovation type: firm-level evidence from the United States’, Industrial and corporate change, vol 28, no 6, pp 1365–1379, accessed 26 July 2022.< https://academic.oup.com/icc/article/28/6/1365/5382024> Deeb, G 2014, The Reasons Big Companies Struggle With Innovation, Forbes website, accesses 25 July 2022 11 11 de Waal, GA 2016, The links between Creativity, Innovation and Entrepreneurship, RMIT University Fapohunda, T 2013, Towards Effective Team Building in the Workplace, Lagos State University, accessed 22 July 2022 Forbes 2022, The World's Most Innovative Companies, Forbes website, accessed 23 July 2022 < https://www.forbes.com/special-features/innovative-companieslist.html> Ghosh, K 2015, "Developing organizational creativity and innovation: Toward a model of self-leadership,employee creativity,creativity climate and workplace innovative orientation", Management Research Review, vol 38, no 11, pp 11261148, accessed 25 July 2022 Hill, L A., Brandeau, G., Truelove, E., & Lineback, K (2014) Collective Genius Harvard Business Review(June), accesses 25 July 2022 Hotcar 2018, 23 Amazing Cars That Never Made It To Production And Why, Hotcar website, accessed 22 July 2022 Lasrado, F 2019, Fostering Creativity and Innovation Creating a Sustainable Innovation Environment in the United Arab Emirates, 1st ed 2019., Springer International Publishing, Cham, accessed 24 July 2022 Moore, GA 2008, Dealing with Darwin : how great companies innovate at every phase of their evolution, Pbk ed., Portfolio, New York Mumford, MD & Todd, EM 2019, Creativity and Innovation in Organizations, 1st edn, Routledge, Milton, accessed 24 July 2022 12 12 https://ebookcentral.proquest.com/lib/rmit/detail.action?docID=5975468&pqorigsite=primo Nezamaykin IV, Serebryakova G.V , Sycheva S.M., Shramchenko T.B 2019, Problems Of Team Formation And Functioning In Modern Conditions, GCPMED 2018 International Scientific Conference "Global Challenges and Prospects of the Modern Economic Development, accessed 24 July 2022 Product Life Cycle Stages n.d, Product Life Cycle Challenges, Product Life Cycle Stages website, accessed 26 July 2022 Reina, D;, Reina, Hudnnut D, Why Trust Is Critical to Team Success, research report, Center for Creative Leadership, accessed 25 July 2022 Schneidies, N n.d., 15 Business Lessons from Amazon’s Jeff Bezos, Income website, accesses 23 July 2022 Schilling, M.A (2006), Strategic Management of Technological Innovation, 2nd ed., McGraw-Hill, New York, NY, accessed 26 july 2022 < https://doc1.bibliothek.li/aax/FLMF020778.pdf> Salas, E., Sims, D., & Burke, C (2005) Is there a 'Big Five' in teamwork? Small Group Research, accesses 26 July 2022.< https://journals.sagepub.com/doi/10.1177/1046496405277134> Tidd, J., Bessant, J., & Pavitt, K (2005) Managing innovation - integrating technological, market and organizational change (3rd ed.) Australia: John Wiley and Sons Torugsa, N (Ann) & Arundel, A 2016, ‘Complexity of Innovation in the public sector: A workgroup-level analysis of related factors and outcomes’, Public management review, vol 18, no 3, pp 392–416, accessed 26 July 2022 13 13 Zhou, J 2015, The Oxford Handbook of Creativity, Innovation, and Entrepreneurship, Oxford University Press, Incorporated, Cary Available from: ProQuest Ebook Central., accessed 21 July 2022 14 14 15 15 ... https://academic.oup.com/icc/article/28/6 /13 65/5382024> Deeb, G 2 014 , The Reasons Big Companies Struggle With Innovation, Forbes website, accesses 25 July 2022 11 11 ... 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