Technological Innovation Role in Company Success

How organizations that embrace innovation of all types are more likely to thrive

There are several large companies and organizations that are currently embracing innovation with the aim of improving their performance. Through innovation, firms are in a position to make effective use of both the internal and the external capabilities that enable them to penetrate a wide range of markets alongside advancing their current technology. Lack of innovation makes it very difficult for companies to achieve the desired goals and objectives since they entirely rely on the internal opportunities. It is important for organizations to make extensive use of knowledge that is widely distributed across the world (McKeen & Smith, 2009). This implies that companies should visualize the need of utilizing the inventions or processes developed by other organizations. Any idle invention within a given company should be transferred in other areas through different ways such as licensing, spinoffs, or joint ventures. By so doing, companies are able to inject fresh and new ideas in the marketing of products and services.

Ashland Inc. is a typical example of a company that has successfully incorporated high levels of innovation that has improved the general performance. The company specializes in the manufacture of chemicals. Its offices are located in Dublin. For a very long time, the company’s customers were faced with a serious challenge of seeking appropriate ways of controlling the quantity of waste in landfills. The company found it necessary to seek assistance from NineSigma. The latter is an innovative services company located in Cleveland. Ashland needed to embrace cost-effective solution by identifying an appropriate technology that would help to dispose the composites in a manner that would not cause any harm to the immediate environment (Halen, Vezzoli & Wimmer, 2005). However, it should be noted that some companies like P&G have not fully embraced innovation since they fear compromising the business by exposing the confidential development and research of the company. Pearlson and Saunders (2010) observe that this practice can make an organization to lose its market share especially against competing companies that engage in high levels of innovation.

In my view, innovation is an effective strategy that helps large organizations to cope with the high levels of competition. It also acts a tool that helps companies to remain relevant and achieve the desired development goals. According to Lucas (2005), failing to embrace innovation may lead to adverse effects especially to middle companies that are yet to achieve the desired development levels. Such organizations should understand the significance of taking full advantage of innovation as a way of improving and retaining their current competitive advantage.

The big awaking moment in the past that technology was the way to move forward to success

Before the modern development of technology, many organizations faced a lot of difficulties in undertaking their various activities. For example, companies lacked the ability to transmit information over long distances in a reliable way. It was also not easy for companies to hire experienced workers from remote locations. As a result, majority of these businesses recorded reduced performance as a result of producing at lower levels or producing inferior products. Due to the advancement of technology, quite a number of organizations have managed to achieve their desired goals, targets, and objectives. In addition, the development of technology has made it easy for companies to engage and operate several activities from a single location. For instance, the internet facilitates exchange of information within a short time (Pearlson & Saunders, 2010).This means that a single business manager can operate multiple branches, and this is one of the strategies of cutting the total cost.

It is factual to note that technology has offered substantial benefits to companies in various ways. As a matter of fact, technology has assisted manufacturing companies to produce and sell improved and innovative products. Such products can be produced in mass quantities because technology enhances large production using a small number of workforces. Therefore, companies are in a position to reduce labor costs that would have otherwise been incurred in the absence of technology. The development of technology has also improved the company’s internal management, as well as the overall profitability and effectiveness.

Where would you start with your new business?

Since the business unit is within the manufacturing field, there is a great need for to the business to make extensive research to find whether its competitors are already dealing with the product that the business wishes to introduce in the market. This is important in helping the business make a decision on whether it should go ahead and introduce the new product, or make modifications on the existing product. Businesses can achieve the much needed success by introducing a product that has never been in the market. However, great caution should be taken because not all new products are received positively in the market (House & Price, 2009). In this case, it is vital for the unit to start by seeking knowledgeable and well experienced contractors. Before making the actual introduction of the product, the company’s management should get the necessary clearance from government authorities to avoid any future frustrations from the authorities. Clearance involves obtaining the necessary licenses and permits as well as other vital documents that prove the legality of the business.

The contractors should aim at adopting a technology with a relatively low cost. This prevents the business from incurring a lot of expenses when introducing the new product. A high production or manufacturing cost translates into a high price of the product. When the price of a given product is very high, the demand of that product will definitely reduce. Consumers prefer to purchase other similar products whose prices are considerably low. This is a vital factor to consider since it determines the level of performance of the new product and the overall profitability of the unit (Leontiades, 1985). Another important issue that the management of the business should put into consideration is the availability of the market of the product that the business wishes to introduce. Choosing a location with a ready market can offer significant contribution to the unit in terms of reduced advertisement and promotional costs. In addition, the business is able to reduce transportation costs that may consequently increases the total revenue realized from the sale of the new product.

The importance of innovative leadership and culture to the organization’s success

An innovative leadership and culture offers significant benefits to an organization in various ways. Through an innovative leadership, leaders in several public agencies like the British Broadcasting Corporation have managed to harmonize the internal and external environment of the corporation, and also use the findings to maintain the competitiveness of the firm. Apart from helping the corporation to remain competitive, leaders use this information to acquire continuous learning of the organization by adjusting to variations that exist within the external environment. Secondly, this type of leadership has helped the corporation’s leaders to understand, integrate, and absorb fresh and sensitive ideas in accordance with varying needs of the business. Thirdly, leaders find a lot easy to assess the feedback from customers by addressing their needs or problems. Innovative leadership and culture also facilitate information flow within the organization while fostering product innovation. In short, this form of leadership plays a very important role on the overall success of the organization (Gawarzynska, 2010).

On the other hand, lack of innovative leadership and culture makes it extremely difficult for an organization to satisfy its stakeholders. Some agencies (such as Royal Mail) have failed to fully incorporate the aspect of innovative leadership and culture within the organization. As a result, the organization experiences frequent challenges when trying to meet its goals and objectives. A company is likely to achieve the desired level of success if its leaders portray some form of innovativeness especially on the products or services offered by the company (Gawarzynska, 2010).

Denison’s model of organizational culture is effective in comparing the performance of British Broadcasting Corporation (BBC) and the Royal Mail. According to Yilmaz and Ergun (2008), this model aims at drawing a comparison between different organizations that incorporate innovative leadership and culture, and those that lack this form of leadership. Rao and Krishna (2005) are categorical that the most appropriate dimensions that can be measured by this model include adaptability, involvement, mission, and adaptability. A matrix that incorporates all the four traits is very effective in ascertaining the differences and similarities that exist between companies that use or avoid the use of innovative leadership and culture. The involvement and consistency traits try to make comparison by establishing whether these two organizations are able to maintain a well integrated culture.

Moreover, the involvement traits helps to find out whether the managers, executives, and employees of these companies are part of the organization’s activities while the consistency trait can help to find out the level at which behavior is rooted within the core of the organization. The adaptability aspect facilitates the comparison of the two organizations by establishing whether a given organization is capable of using innovative leadership to engage in continuous innovations that improve the collective abilities of the organization and at the same time provide customers with quality products. Lastly, the aspect that relates to the mission of the organization helps to determine the direction and purpose of the different goals and objectives set by the organization. Comparing these organizations using the four traits is very helpful in the sense that it is easier to come up with accurate finding regarding the application of innovative leadership and culture in any given organization (Halvey, 2005).

Reexamining the approach used to deliver e-mail and instant messaging applications

A company can adopt different strategies to ensure that the approach used by an organization to deliver emails and instant messages meets user expectations and maintains the desired level of costs or expenses. According to Gawarzynska (2010), the benefits of retaining the data center and ownership of the applications include the following.

  • The organization finds it easier to maintain connectivity within different departments
  • It ensures the security of delicate and confidential information
  • The management can transmit the required information to all its staff at reduced costs
  • Less skills are required to employ the strategy

It is also worth to mention the drawbacks associated with retaining the data center and ownership of applications. These drawbacks include the following.

  • The technique can prove to be very expensive especially if the organization is trying it for the first time
  • Confusion is likely to arise if the system is maintained poorly.

References

Gawarzynska, M. (2010). Open innovation and business success. Hamburg: Diplomica- Verl.

Halen, C.., Vezzoli, C., & Wimmer, R. (2005). Methodology for product service system innovation: How to develop clean, clever and competitive strategies in companies. Assen: Koninklijke Van Gorcum.

Halvey, J. K. (2005). Information Technology Outsourcing Transactions: Process, Strategies, and Contracts. Hoboken: John Wiley & Sons.

House, C. H., & Price, R. L. (2009). The HP Phenomenon: Innovation and Business Transformation. Palo Alto: Stanford University Press.

Leontiades, J. C. (1985). Multinational corporate strategy: Planning for world markets. Lexington, Mass: Lexington Books.

Lucas, H. (2005). Information technology: Strategic decision making for managers. Hoboken, NJ: John Wiley & Sons.

McKeen, J. & Smith, H. (2009). IT strategy in action. Upper Saddle River, NJ: Pearson Prentice Hall.

Pearlson, K., & Saunders, C. (2010). Managing and using information systems (4th ed.). Hoboken, NJ: John Wiley & Sons.

Rao, V. S. P., & Krishna, H. V. (2005). Management: Text and Cases. New Delhi: Excel Books.

Yilmaz, C. & Ergun, E. (2008). Organizational culture and firm effectiveness: An examination of relative effects of culture traits and the balanced culture hypothesis in an emerging economy. Journal of World Business, 43 (3), 290– 306.