Process of Innovation and Change Management
MANAGING CHANGE AND INNOVATION
BU5559
SUBMITTED BY EZIE, CYNTHIA C.
SUBMISSION DATE 22 MARCH 2010
INTRODUCTION TO INNOVATION AND CHANGE
Innovation is the process by which ideas are created, selected and implemented to bring about profitable change to organisations. Innovations come as a result of an identified need for organisations to change their current processes, activities or operations. Andriopoulos and Dawson (2009) explain that organisational change is ‘new ways of organizing and working’. They explain that change occur in two dimensions – movement of state and scope of change.
Bessant and Tidd (2007) are of the opinion that innovation is the translation of conceptualised ideas into commercially profitable products and services. They also go ahead to say that innovation helps firms differentiate their products and services from competitors and this makes them twice more likely to become more profitable.
The ability of organisations to apply and develop innovative capabilities enable them achieve and maintain sustainable advantage. Certain factors promote innovative environments which can improve performance and profitability of organisations, some of which are: □ The firm’s source of innovative ideas and capabilities which may be internal or external as well as advances in technology within the industry □ The structure and hierarchy of the organisation to deal with innovative changes □ The size of the organisation and the level of risk they are willing to take □ Organisational growth and market globalisation □ The level of employee education and exposure to change □ Environmental factors such as economic and political situations
The following is an explanation to the reasons why firms adopt innovations, how the selection and implementation of innovation can work successfully within a given context and not in another. It also explains the difficulties associated with
BU5559
SUBMITTED BY EZIE, CYNTHIA C.
SUBMISSION DATE 22 MARCH 2010
INTRODUCTION TO INNOVATION AND CHANGE
Innovation is the process by which ideas are created, selected and implemented to bring about profitable change to organisations. Innovations come as a result of an identified need for organisations to change their current processes, activities or operations. Andriopoulos and Dawson (2009) explain that organisational change is ‘new ways of organizing and working’. They explain that change occur in two dimensions – movement of state and scope of change.
Bessant and Tidd (2007) are of the opinion that innovation is the translation of conceptualised ideas into commercially profitable products and services. They also go ahead to say that innovation helps firms differentiate their products and services from competitors and this makes them twice more likely to become more profitable.
The ability of organisations to apply and develop innovative capabilities enable them achieve and maintain sustainable advantage. Certain factors promote innovative environments which can improve performance and profitability of organisations, some of which are: □ The firm’s source of innovative ideas and capabilities which may be internal or external as well as advances in technology within the industry □ The structure and hierarchy of the organisation to deal with innovative changes □ The size of the organisation and the level of risk they are willing to take □ Organisational growth and market globalisation □ The level of employee education and exposure to change □ Environmental factors such as economic and political situations
The following is an explanation to the reasons why firms adopt innovations, how the selection and implementation of innovation can work successfully within a given context and not in another. It also explains the difficulties associated with
References: Bessant, J. and Tidd, J. (2007) Innovation and Entreprenuership. Chichester: John Wiley Dawson, P. (2003) Reshaping change: A processual approach. London: Routledge Dawson, P., (2009) Making change matter. Public Sector Executive, Mar/Apr pp 30- 32 Desouza, K. C., et al (2009) Crafting Organizational innovation processes. Innovation: Management, Policy and Practice 11 (1) pp 7- 36 Hearn, G. and Ninan, A., (2003) Managing change is managing meaning. Management Communication Quarterly : McQ 16 (3), pp 440-445. http://www.proquest.com/ (accessed March 8, 2010). Montalvo, C., (2006) What triggers innovation Technovation 26(3) pp 312- 323 Price, A. (2004) Human Resource Management in a Business Context. 2nd ed. London: Thompson Riddle, D., (2000). Managing change in your organization. International Trade Forum 2, (January 1), pp 26-28. http://www.proquest.com/ (accessed March 8, 2010). Wu, L-Y., (2010) Which companies should implement management innovation? A commentary essay Journal of Business Research 63, pp 321-323