Innovation in Action
This paper provides a comprehensive investigation on the importance of innovation in the business world. Business innovation allows an organization to meet the ever-changing demand for the customers as well as providing for improved satisfaction. However, for any innovation to be a success, it provides a better return on investment (ROI) and financial gains to the business organization. In addition, the innovation must be able to increase the value of the stakeholders. The concept of value addiction recognizes the reduction of costs incurred in developing high quality products (Esslinger 403). Innovation process is complex and only identified for important reasons of enhancing organizational success. Successful innovation helps in adjusting and adapting to the current changes in the environment, such as technological changes, competition, and market changes. Different firms will employ different innovation activities in their business operations differently due to the nature of the industrial services and products. Effects related to the products are more common than process effects, including quality improvements in the products. This identifies innovation to be more customer-focused in fulfilling their demands. Nevertheless, the innovation process has faced the difficulty of meeting the current regulatory policies as well as increasing value in the businesses (Aldás-Manzano et al. 59). As a result, the research work analyses the significance of different innovation initiatives in the current business world.
Theory of Innovation
The online banking is an incremental innovation considering its series of small improvements for the existing financial banking services. With the existence of financial services, online banking sought to develop and improve the competitive edge of the banks over times. This relates to its continued integration with improved technology that is tailored to meet the customers’ requirements. In addition, the incremental improvements made to the banking services have been incredible considering the current market competition. Innovators and financial experts were seeking to offer innovation solutions to new and additional market categories. The importance of incremental innovation is unlimited due its increased benefits in the corporate world. Online banking as an incremental innovation has improved the overall experience of designing the financial and banking services (Guriting and Nelson 12). Incremental innovation has helped the banks to deal with the dynamic nature of customer’s needs. The customer demands keep changing due to the nature of current markets. Thus, incremental innovation present in the banking services keeps on designing services and processes that matches the needs of the customers. Therefore, online banking innovation is one of the major examples of incremental innovation.
The innovation defines the interaction between different elements. It delivers a wide range of services with different institutions, individuals, and organizations that works together. The different elements include the innovation infrastructure. The innovation infrastructure identifies the supporting institutions that promote the development and implementation of the different properties, standards, and designs. The infrastructure seeks to provide specialized knowledge to the implementation of the science infrastructure. The infrastructure comprises information that provides resources and the reduction of costs involved in innovation and enhancing efficiency and connectivity. The standards, frameworks, and guidance would enhance the expertise of the innovation process in the business operations. It also involves the knowledge base that comprises different organizations involved in the education, training, and research aspects (Chesbrough 357). This includes the public sector research organizations and higher education program. In addition, the business community forms an integral part of the innovation process in the economies. The business community includes innovation agencies that seek to accelerate the innovation processes and initiatives.
There are various types of innovation, including radical innovation, incremental innovation, disruptive, and process innovation. The different types of innovation require the involvement of the various partners and stakeholders in the economies. Collaboration with different partners and stakeholders is relevant in enhancing innovation success in the business organizations. Access to finance for the firms is important in matching with the demands for the current changes. There are various barriers in understanding the innovation related funding, such as loan finance. The access to finance has been supported by the various SMEs and backs to develop the response to the innovation demands and initiatives. In addition, there is a need for smart specialization in assessing the current economic strengths and relevant advantages. The specialization identifies the recognition of the new emerging opportunities for the growth of the businesses as well as discovering the new initiatives for innovation (Rogers 200). Businesses are urged to work closely with research centers and public centers, as it provides a strong understanding of the existing business potential. This provides for improved strategic alignment for public funding necessary in supporting innovation.
The businesses understand that innovation is an on-going process of learning and understanding the more productive and sustainable investments at different levels. The benefits obtained from the innovation programs can be transferred to other related industries and sectors in the economies. The businesses should understand the importance of research and development programs in sustaining better innovation initiatives. The modern industrial strategy has strong impacts in developing a long-term approach that gives businesses the opportunity to invest and expand their business operations (Schaltegger 126). Some of key areas for innovation expansion and development include the technologies, access to finance, procurement, and the relevant skills and strategies.
The key elements provide flexible support to the various sectors, but it guides in the improvement of sector-specific strategies for effective government intervention. The organizations are finding it competitive to invest in the high value addition programs in the worldwide value chains. This is advantageous than the traditional research and development as it supports growth of the businesses. The increased investments in intangible knowledge and assets are vital to the success of most businesses (Lassar, Chris and Sharon 180). The investment is done in the form of knowledge-based capital. The organization requires the highly skilled and technical employees in enhancing the technical capabilities of the businesses. The lack of effective management and basic skills has been a major concern from many organizations. Thus, the presence of strong technical and managerial skills from innovation development strategies improves the positive development of the organizations. Therefore, the innovation activity has been able to overcome the various barriers affecting the success of the organizations.
Moreover, process innovation can be explained by the strategic management of the position of the company in relation to the suppliers of goods and services. The strategy seeks to protect and provide the company with multiple contractual performance and management. Innovation management principles creates a strong mindset relevant in promoting the performance of the suppliers in bring strong competition as well as meeting the customer demands. The alignment of the innovation ideas with the overall business objectives is helpful in promoting the significance of the innovation process in the businesses (Johnston and Douglas 145). Innovation among suppliers helps in the creation of proper strategic partnerships to promote the long-term benefits in the organizations. For example, the tendering process is useful in the selection of the right suppliers that matches the management style and working ethics.
Innovation acts the main concept that guides in the generation of ideas to promote the success of the businesses. Companies that lacks innovation engine would not be able to survive in the modern business environment. For instance, innovation covers product development processes that seek to offer incremental improvements as well as fighting off competition. In most industries, innovation has been useful in supporting the status quo. The companies faces the difficulties of coming up with new ideas on the marketing, product development and management of the existing ideas. Thus, innovation provides significant efforts of transforming the business operations (Chesbrough 358). However, the innovation programs require heavy investments to maintain the organizational profitable status. The big companies pay well and provide high value due to their ability to maintain the highly skilled employees. The management should have a positive thinking towards the innovative processes and structures of products and services.
It is important to understand the innovation processes as it puts the management in better position to apply relevant techniques and skills. The innovation process includes the ideation stage, concept development, evaluation, commercialization, and incremental innovation stage. The process should always remain flexible and support external engagements. This supports the valuation of the information and resources necessary to support continual improvement. The innovation strategies have been instrumental in supporting the generation of better ideas and rewards for enhancing the operational efforts. This encourages innovative and creative thinking that is necessary tool for enhancing innovativeness in the various areas. Strong leadership and teams also maximize the innovation through the delivering of strategic and tactical decision in the organizations. The innovation teams works closely to share ideas that enhances communication and the sharing of information among various persons (Aladwani 218).
In order to company to survive in the current environment, it must adapt and evolve in its operations. Since it is able to gain the knowledge and understanding of the competitions as well as understanding the company’s ability to survive and deal with constant changing environment. In the facilities management, the innovation process should be highly integrated to enhance the acquisition of knowledge in the organizations. This enhances the development and enhancement of the various aspects of innovation (Schaltegger 156). It is argued that the main barrier in understanding innovation is the lacks of an appropriate structure and measures that hinders the process to applying and relevant interventions for the firms. The business should be able to understand whether the innovation methods and techniques are relevant for the company or not. Therefore, the success of innovation in the facilities is more based on the nature of adoption than the origin of the technological innovation. Several studies have been done on the profitability of the innovation in the long run suggesting that it is a good gamble for all organizations operating in current business world. For example, the Process Driven Collaborative Assessment Model for Innovation (PDCA) has helped in promoting the current innovation process to the creation of a more integrated innovation management approach (Johnston and Douglas 135).
Limitations in the Innovation Techniques
In most organizations, innovation programs are still lagging behind as the organizations focuses on people-oriented processes than the construction of the appropriate innovation programs. Such organizations prefer to use the people in promoting their strategies and meeting their objectives. Nevertheless, the firms are unable to gain from the value addition provided by the innovation activities. The people-oriented programs are detrimental to the application of the innovation programs in the organizational and business processes. Second, the calculations and performance metrics relies on the different assumptions based on false assumptions and not the real aspects of value addition. Based on the cost benefit analysis, it is unable to understand the main cost effectiveness of the innovation programs. This creates a controversy over the categorization of innovation as the most valuable asset in enhancing organizational learning and efficiency. Apart from all, a healthy climate for innovation leads to positive effects on organizational performance. The results should be measured using self-assessment techniques, performance measurement and value scorecards among others. It also involves the measurement and assessment of the impacts of the innovation in the business relying on the feedback of the different stakeholders and customers.
Third, the presence of unsupportive environment and organizational culture such as insufficient access to knowledge, lack of necessary infrastructure, limited access to innovation programs are some of the limitations to innovation programs. The success and long-term application of innovation program requires strong leadership frameworks, research and development as well as focused workers to increase the ability of the current processes and technologies to incorporate innovation in the business operations. However, the innovation process should be classified as an organizational learning system that would bring about strong changes in the company (Esslinger 401). In the facilities management, some of the incremental changes should be noted creating strong value addition. Therefore, the presence of resources and strong processes would promote the application of the innovation activities and evaluation of the corrective measures and processes.
Lack of integration between the best process and the current ideas and organizational capabilities limits the provision of strong strategies in the organization. It is crucial to incorporate the business management systems into the organization in order to incorporate research and development programs for driving the necessary initiatives in the organization. Most successful firms have adopted strong business models and practices in the development of new idea and products in the innovation process (Tushman and Charles 241). In addition, the lack of structured process for the employees in the innovation process has been detrimental in the success of the businesses. For instance, the inability to access the top mangers hinders effective communication in the organization settings. This is a major barrier in promoting the various opportunities needed to incorporate the innovation programs in the operational activities. Proper structures for the employees promote leadership and access to the effective communication among the various individuals. This translates to the overall long-term organizational success and profitability.
In terms of process and incremental innovation, a case of Google provides detailed analysis of the benefits of innovation in the business world. Google Inc has eight pillars used in driving innovation in the company. The strong innovation initiative has helped the company to succeed dint eh current dynamic business world. The eight pillars develop key processes and principles necessary for driving great innovations. This has nurtured a culture of innovation in the company for many years. Google has more than 26, 000 employees located in different countries across the world. All the workers maintain unique spirit of innovation that has been instrumental in supporting the learning and development of the employees. Many companies still faces strong challenge in managing innovation in current business world. In spite of the presence of skilled labors and strong markets, the failure in terms of innovation and research costs many firms their business success. To improve the innovation performance, the employee must rely on their creative and innovative abilities to challenge the current conventional models and organizational designs.
Over the years, Google has been able to overcome the current conventional management ideas. In 2010, a suitable management model that supports innovation ran Google business operations. From an external view, Google relies on strong engineering skills and scientific applications built around its six management principles. The principles include dynamic capabilities, dynamic nature of organizational structures, people-centered model, planning and control approach, external organization and a systems approach. The success of the six principles has been made possible by Google’s supportive leadership approach (Schaltegger 128). Google’s ability to continually develop and innovative new ideas and approaches support the company’s innovation and success in the modern business world. In addition, various aspects including the resources have supported the innovation potential of Google. The company has strong human, intellectual, physical and financial resources. For instance, the success of the Google search platform could illustrate the usefulness of the resources in supporting innovation.
Theories and Models on Technological Innovation
Several theories have been documented to understand the nature and importance of technological innovation in the current business operations and development processes. The insights of Schumpeter and Solow theory suggests that innovation is based on the aspects of creative destruction that were important in enhancing the success of driving enhanced growth rate in the capitalist system. The ideas of Schumpeter developed to an extent of arguing that exceptional individuals support innovation. The exceptional individuals are instrumental in supporting and organizing the innovation ideas. This led to the emphasis on the role of oligopolies in enhancing innovation and its relevant contribution in innovation development. The theory also focused on the disruptive nature of technological changes in handling short-term business instabilities as well as promoting the long-term growth of the business processes. Schumpeter suggests that the entrepreneurs were supposed to be independent inventors and research and development persons in the big organizations. This would offer new opportunities with the innovation initiatives and programs (Johnston and Douglas 155). Schumpeter also argued that the innovations were influential supporting the business cycles in the organizations. However, he does not provide the main role of innovation in his theoretical arguments, but he able to show the significance of innovation in supporting economic growth and development.
The idea of innovation diffusion has also been discussed by various theories and approaches. Some of the factors that influence innovation diffusion include the nature of the industry, firm strategy, and the governmental policies. Diffusion can be understood by the creation of the random patterns that emanates from individual thoughts and ideas. Firms usually obtain innovation through experimentation with new technologies. However, the understanding of user’s needs is necessary in ensuring that firms a successful innovator (Teece 180). Other scholars have described innovation diffusion as a cumulative and interaction process that occurs between the different users and distributors of the innovations. Therefore, the various literature reviews appreciates the significance of innovation diffusion in creating innovation that relates to the technological capabilities, features of the firms, and the history of the business operations.
In addition, innovation offers intrinsic motivation to the workers that supports improved creativity. The innovation and creative process have helped on creating strong relationships in the organization supports improved performance. The dimension of self-development has facilitated positive organizational aspects that create prosocial behaviors towards the customers and workers. Some of the major predictors of innovation and initiatives include control and affective organizational commitment. This helps to create strong control and autonomy that allows for enhanced creativity and innovation (Chesbrough 121). Considering the nature of innovation outcomes, they have provided positive influences towards supporting innovation adoption decisions in the various ways. Therefore, innovation is instrumental in the creation of positive moods and perceived recognition of innovative ideas and products in the business world.
The innovation efforts have led to enhanced sustainable competitive advantage for local and multinational companies. This relates the business factors that support innovation for creating competitive advantage. It helps to meet the demands for new resources that support both long term and short-term demands of the shareholders. However, there are designs of various strategies that support organizational operations and growth strategies. This provides better opportunities for development and the implementation of clear linkages and strategies in the current business world (Teece 180). The growing innovation initiatives and implementations have supports the incremental approaches in creating new solutions. The business leaders emerge to be best suited in dealing with business issues and challenges in the current society. The trend of the various partnerships in supporting innovation and creativity is also characterized with social responsibility and citizenship. The presence of strong innovation networks contributes to the success of the sustainable growth programs in the organizations. Innovation process can be characterized by the maintenance of strong partnering networks and open collaboration for enhanced sustainable innovation (Davila, Marc and Robert 176).
Innovation is closely associated with the development of both formal and informal structures in the current business world. However, there are has been an emerging competitive environment that affects the market segmentation and supply of resources affecting innovation. In spite of all, various growth factors support the continuous transformation in the industry. These include co-creation between customers and users and value creation and the experience on the customer perspective (Tushman and Charles 201). The findings of the innovation concepts support the designs of consumer specifications that support continuous growth and innovation. Today, as the investors and stakeholders searches for transparency and accountability, innovation has been supportive in enhancing transparency. Innovation programs have been able to create better strategies and business models for value creation. Nevertheless, the innovation processes requires various factors to enhance creativity and performance. The factors are ethical, social, and environmental aspects in the business engagements.
Online Banking Innovation
Online banking can also be known as internet banking. The innovation allows people to perform their banking transactions at the comfort of their homes and offices. The innovation has also made sure that there is no need to travel to the banking halls. The innovation of online banking has helped to make the financial world better and convenient. Online banking innovation is technological type of innovation that has been able to resolve the problems of queuing in the banking halls for the banking transactions. As a result, online banking has transformed the financial services in the banking and commercial industry.
Characteristics of Online Banking
The innovation of online banking has various unique characteristics that enhance productivity in the current business world. First, it comprises of email and mobile money transfers. Online banking allows for online money transfers and regular email updates. It also sends alerts in form of text messages on the accountholders mobile phones. Fees may apply to the various checking orders by the customers. The innovation allows customers to transfer their money from one account to account or even from your bank to another. Lastly, online banking has promoted mobile banking (Yoon 1299). It allows for mobile transactions including the Kindle, iPad, and Android devices among others.
Online Banking is a Technological type of Innovation
Online banking is a technological type of innovation, since online banking has emerged from the ongoing technological changes in the society. The advancement in information technology and telecommunications has helped to create secure online banking transactions. Technology has helped to develop cost effective programs in the banking sector. The technological innovation sought to bring new ways of handling banking services (Chong 278). Even though online banking can be classified as a financial innovation, I think it is more of a technological innovation.
Impacts of Online Banking to the People
The development of online banking in current banking and commercial services industry has offered various benefits to the people. First, it offers a better experience due to the interface for bill payments and online transactions. The online banking services have been integrated to the core operations of the banking institutions. The integration makes the banking services easier and understandable by both the employees and the clients. Online banking has also incorporated the different mobile payment systems and platforms that enhance payments and money transfers. The account holders are able to monitor their accounts through their mobile phones (Etzkowitz 34). The innovation also comes with improve customer service that helps the customers to their save their money. This implies the various impacts of online banking to the people in the society.
In summary, the paper indicates that the innovation programs and initiatives are useful in promoting business efficiency and performance. There are various types of innovation many including radical innovation, incremental innovation, disruptive, and process innovation. Different firm will employ different innovation activities in their business operations differently due to the nature of the industrial services and products. Innovation adoption offers better opportunities for development and the implementation of clear linkages and strategies in the current business world. The growing innovation initiatives and implementations have supports the incremental approaches in creating new solutions. Businesses are urged to work closely with researcher centers and public centers as it provides a strong understanding of the existing business potential. The businesses should understand the important of research and development programs in sustaining better innovation initiatives. The modern industrial strategy have strong impacts in the developing a long-term approach that gives the business the opportunity to invest and expand their business operations. The innovative programs also supports innovation needed in creating competitive advantage. Therefore, most companies rely on the innovation process for supporting competitive advantage as well as enhancing efficiency and effectiveness.
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