Bmw as Innovative Organisation

Topics: Innovation, Technology transfer, Diffusion of innovations Pages: 10 (3619 words) Published: February 26, 2013
1. Introduction
Over the last years, with the rapidly increased needs and the high rates of technology’s development, innovation could not be less than essential to the companies. Innovative company and furthermore innovation can be considered as technology or management issue that is being for the first time by the specific even if they were used by another companies or as the redesigning of a product or an improvement in a process. Innovation originally is defined as the changes that are made in something that is already established (Oxford dictionary). This technical report will be focusing on addressing whether a company is innovative or not. Additionally the characteristics of innovation and which of them are the selected company meeting will be discussed. Moreover the strategic alliances of the selected company and as a result which particular technology will be both of them used will be described. 2. Initial selection

As it is widely known one of the world’s largest automobile companies is BMW Group. The company is listed by the Forbes as the 9th most powerful brand, and included in the 100 largest companies in the world (Forbes, 2012). BMW Group is a leading company in the automobile industry and in the motorcycle industry. The company is also high ranked with 5/5 stars on the car models by NCAP, the European Union’s car safety organization (EuroNCAP, 2012). The BMW Group is the owner, in the automobile industry, of MINI (Morris Mini-Motors) and the Rolls-Royce Motors Cars. Furthermore Husqvarna Motorcycles is owned by the BMW Group as it was acquired on 2007. 3.1. Innovation’s categories

A company in order to be capable of being called as innovative must arrange innovative actions in one or more of the following aspects: market, process and product innovation (Johne, 1999). Product innovation is referring to the product updating and completely renewing for keeping strong market presence. Process innovation is being mentioned as embracing quality function deployment and business process reengineering. The development of a product over a time remaining at the same performance but with lower cost is added by the author as process innovation. The market’s innovation purposes are to identify in better way the market and to serve in a better way as well (Johne 1999). The author continued that it can be achieved if the company will divide the current market into smaller parts so the management would be easier. 3.2. Innovation characteristics

The characteristics of innovation have been an argument among the scientists that are studying in that particular sector. Based on studies of Downs and Mohr (1976) observed that the innovation characteristics can be divided into primary and secondary attributes. Primary attributes can be considered as the characteristics that are intrinsic to an innovation such as the actual cost and complexity. On the other hand, secondary attributes are the characteristics that are perceived by the individual adopter such as perception of cost (Moore and Benbasat 1991). As a result the primary innovation characteristics can be presented as cost, complexity. Oppositely, secondary attributes are relative advantage, compatibility, observability, trial-ability and voluntariness (Moore and Benbasat, 1991). Referring to the primary innovation characteristics, innovation cost is a critical component of organization performance and it negatively affects innovation adoption. The less expensive an innovation is, the more likely it will be adopted by organizations (Rogers 1995). Innovation complexity is defined as the degree to which an organization is capable of understanding and using it (Rogers 1995). On the other hand, referring to the secondary attributes, relative advantage is a characteristic that applied in the current report (Rogers, 1983; Bulte, 2000). Relative advantage refers to the degree in which a company can benefits from the innovation. The compatibility refers to...

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* Emerald Article (2004), What next for BMW and Cadillac? : Strategic shake-ups in the auto industry, Strategic Direction, vol.20 91), pp. 4-6
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