Management Innovation

Topics: Innovation, Economics, Economy Pages: 3 (620 words) Published: September 18, 2014
Management Innovation-Role of a Consultant

Management Consultant ‘Innovation is the specific instrument of entrepreneurship. It is the act that endows resources with a new capacity to create wealth. Innovation, indeed, creates a resource. There is no such thing as a ‘resource’ until man finds a use for something in nature and then endows it with economic value. Until then, every plant is a weed and every mineral just another rock.’ (Peter F.Drucker, Innovation and Entrepreneurship, 1985) Companies achieve competitive advantage through acts of innovation. They approach innovation in the broadest sense including both new technologies and new ways of doing things. (Porter, 1990) ‘Everyone knows that innovation is a core business necessity. Companies that do not innovate stop existing. This is not news.’ (Henry Chesbrough, open business models, Harvard business school press 2006)

Importance of Innovation has been discussed for decades and continues to be the most talked about management issue these days. Today, knowledge in all its forms plays a crucial role in economic processes. Organizations with more knowledge systematically outperform those with less. Within the knowledge-based economy, innovation is seen to play a central role. It was believed that an enterprise can maintain competitive advantage through quality and price. However, the research at the Ernst Young Centre for Business Innovation (CBI) has revealed that innovation isone of the most valuable differentiator for sustainable competitive advantage. Firms innovate to defend their competitive position as well as to seek competitive advantage. Innovation is at the heart of economic change. In Schumpeter’s words, “radical” innovations shape big changes in the world, whereas “incremental” innovations fill in the process of change continuously. Innovation is the motor of the modern economy, turning ideas and knowledge into products and services.

Apple, Google, 3M, Toyota, Microsoft, GE, and P&G...
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