How To Manage Innovation In Bussiness

Running head: MANAGEMENT 1

Managing Innovation in Business

Student’s Name

Institutional Affiliation

MANAGEMENT 2

Managing Innovation in Business

Introduction

A business is an entity that is started with an aim of advancing and yielding great results

and profits. For a business to succeed and grow there is a need for innovation. Business innovation

can entail developing new ideas, workflows, methodologies, services, and products or improving

the already existing ones (MBA, n.d.). In order to manage innovation effectively and efficiently,

research should be well conducted to affect positive change in business. The main goal of the entire

process is to promote business.

Background

Managing innovation requires managers and all the stakeholders to work together

embracing new techniques and cooperation with a similar understanding of processes and goals.

Innovation management enables a business organization to react promptly to external or internal

opportunities, and use its creativity to promote and enhance business profits (Tidd & Bessant,

2014). Innovation in management principles and processes can bring about enduring merits as well

as generating considerable change in the competitive position of a business. Numerous companies,

which have made proper use of innovation, have grown swiftly. For instance, over the past one

hundred years, management innovation has allowed companies to shift to new performance

thresholds compared to any other innovations in business. Few companies have well-developed

procedures for continuous management innovation. Numerous businesses have a legitimate

approach for product innovation, and others have research and development groups that look into

the frontiers of science (Talebi & Emani, 2014). Almost every business organization in the

universe has in the current years worked comprehensively to regenerate its business activities in

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the view of speed and coherence. Surprisingly, there are still business organizations, which have

not embraced innovation management.

There are numerous examples where innovation management proved to work effectively.

For instance, General Electric honed Thomas Edison’s most outstanding invention, the industrial

research laboratory (Hamel, 2016). General Electric initiated management subject to the disorderly

process of scientific discovery and won added permits as compared to other companies in America

in the following fifty years. Most of General Electric’s contemporary competitive expertise can be

related to the recorded drastic accomplishment. In addition, DuPont played an introductory part in

the development of capital-budgeting tactics when it introduced the use of return on investment

computation in the year 1903. A few years afterward, the company additionally came up with a

systemized method of juxtaposing the operations of its enormous numbers of product departments.

The innovations, amid others, aided DuPont in becoming one of the best industrial giants in

America (Hamel, 2016). A management success can bring forth a formidable benefit to the

innovative company and lead to an unstable change in industry leadership.

Discussion

Innovation management in business is concept traced back in the 1900s and it has been in

existence up to date. Numerous companies have embraced innovation and it has worked perfectly

in enhancing the performance yet others are still struggling to develop since no business wishes to

stagnate or lag behind in development. Creativity is the foundation of innovation management

with the final results being a change in services or business activities (Gaubinger, Rabl, Swan &

Werani, 2015). Through the utilization of innovation management tools, management can activate

and employ the creative abilities of the workforce for the continued development of a company.

Innovation management can either be pushed or pulled (Pantano & Viassone, 2014). Pulled

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innovation management is ground on existing or newly invented technology that the organization

is able to access with an aim of finding profitable applications for the already-existing technology.

On the other hand, the pulled innovation management process is found on finding access to areas

where the requirements of the customers are not attained and seeking solutions to their wants. To

make it a success with either pushed or pulled innovation management method, there should be a

very clear understanding of both the market and the technical challenges. Creation of multi-

functional development teams can successfully lead to a well-developed innovation process.

Innovative ideas come up as a result of imitating and then inventing (Dawson, & Andriopoulos,

2014). Management of innovation, however, plays a significant role in promoting technological

and institutional innovation. The main aim of innovation management within a business

organization is to create a satisfactory dominion to promote innovation. A favorable environment

can aid the firms in getting additional cooperation projects including the take-off platform for

business enterprises. The continued support from the senior management support is very

significant in ensuring a successful innovation is attained by a business.

Pros and Cons of Innovation in Business Management

Innovation in business management implies a change in some of the business processes.

The change can bring about numerous merits in the business entity depending on the perception

of some workers (Soulsby, 2017). The effect of the change on the company productivity of any

business has two likelihood results. The changes can bring about a significant advancement in

employee productivity. Business can have a new product as a result of innovation, which they can

charge at very high prices before a competing product is introduced. The high charge can bring

about great earnings and hence profits. Innovation in business management brings s up buildup of

a firm’s reputation placing it at a higher position regarding competitive advantage. Being

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innovative increases customer loyalty because they always stick to expecting something new in

the near future. In addition, embracing innovation adds value to the already existing products or

services increasing sales. With innovation in business, firms can take advantage of the economic

scope.

On the other hand, change in business processes can lead to a serious decline in the

workflow. Stoppages can come about in case any problems crop up during the implementation

stage of the anticipated change. Further, embracing innovation can be very costly and time

consuming from the development of ideas to implementation. Innovation requires that the

production or improvement of the new products or services should be able to acquire market as

soon as possible failure to, which it can place a burden to the business with stock lying in the stores

(Soulsby, 2017). The innovation leading to the production of new products or services is prone to

ruining the reputation of the company if the quality happens to be low.

Limitations and Innovation Gap

Numerous organizations tend to react after the worst has happened in their businesses.

Organizations discourage innovation due to their organizational practices such as planning.

Occasionally, there is more talk than actions that lead to businesses not doing what it had planned

to result in failure. Businesses lack time for innovation management, and thus failing to some

extent. In most business, the innovation concept has been left on leaders forgetting that employees

can significantly contribute to innovation. For instance, in a research conducted on 500 large

organizations, it was realized that 88% of the leaders knew that innovation is very significant for

the future but only 33% stated that their organizations were effective in innovation (Weiss &

Legrand, n.d.). The research clearly shows the existing gap in what the leaders speak and what

they do. There usually exists a large gap between the need to innovate and the ability of the

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business organizations to actually innovate in a successful way (Brown, n.d.). The problem to the

gap is not a lack of innovative ideas, but the inability to change the best of the ideas into core

results.

Summary and Conclusion

Innovation is crucial for every business entity. Innovation brings about the development of

a business organization even though not every time it is so. Innovation has been in existence over

a very long period of time. For innovation management in business to be effective, it should be a

combined effort between the leaders and their employees. In addition, leaders should be committed

to working on what they speak to ensure success is attained. An organization should work tirelessly

in closing the existing gaps in innovation. Generally, innovation should be embraced having

weighed the results it may bring forth.

References

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Brown, C. (n.d). How to Close the Innovation Gap. Retrieved from,

https://www.amanet.org/training/articles/how-to-close-the-innovation-gap.aspx

Dawson, P., & Andriopoulos, C. (2014). Managing change, creativity and innovation. Sage.

Gaubinger, K., Rabl, M., Swan, S., & Werani, T. (2015). Innovation and product management.

Innovation and product management: A holistic and practical approach to uncertainty

reduction, 83-113.

Hamel, G. (2016). The Why, What, and How of Management Innovation. Retrieved from,

https://hbr.org/2006/02/the-why-what-and-how-of-management-innovation

MBA. (n.d.). Innovation Management – Managing Innovation in Business. Retrieved from,

https://www.mbaknol.com/modern-management-concepts/innovation-management/

Pantano, E., & Viassone, M. (2014). Demand pull and technology push perspective in technology-

based innovations for the points of sale: The retailers evaluation. Journal of Retailing and

Consumer Services, 21(1), 43-47.

Soulsby, T. (2017). Advantages & Disadvantages of Innovation. Retrieved from,

https://getrevising.co.uk/grids/advantages-and-disadvantages-of-innovation

Talebi, K. A. M. B. E. I. Z., & Emani, A. (2014). SMEs and knowledge-based innovation networks.

International Review of Management and Business Research, 3(1), 279-290.

Tidd, J., & Bessant, J. (2014). Strategic innovation management. John Wiley & Sons.

Weiss, D. & Legrand, C. (n.d.). The Innovation Gap

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