Managing Innovation

Summary

This project is designed as a collaborative effort by the group in analysing the Innovation management for the company HomeStar. There was different learning aspect including the problems that were faced by HomeStar in innovation management. From a technology perspective, we also learn that how HomeStar's innovation strengths that the company can leverage in order to fix the short-term problem. Thus, our group tries to explore the major problem that the company is facing through and in the end of the session there is a recommendation that being offered to the company.

Managing Innovation

Introduction

It is a company that is said to deal with electronic appliances with a tagline that has been endorsed since the start stating” the first, the best, and the only”. HomeStar has faced tough competition from the very start and the biggest competitor it has had is vanguard. The competitors have gone to the extent that it has directly stated HomeStar as being a brand that is old school. Vanguard at the same time has also ensured the fact that it comes up with unique products every time and has also ensured the fact that it has the largest customer base. Vanguard has been able to do so in an effective and efficient manner already. By terming HomeStar as being an old school and at the same time having the ability to come up with latest and unique inventions has tarnished the image of HomeStar that once enjoyed monopolistic advantages (www.innovation-management.org).

Discussion

It is important to note that in general, innovation is the economic application of ideas, technology or processes in new ways to gain competitive advantage. There are two main types of innovation product innovation and process. Product innovation involves goods or services bring new or improved market greatly. Process innovation concerns itself with improving business functions necessary for the benefit of providing goods or services. Much of the focus and hype around innovation focuses on product innovation especially radical innovation. This has the greatest potential benefits, but carries the highest risk.

The main problem that HomeStar has as of now is the fact that it has an ineffective and inefficient research and development department which has consequently led to lower demand of the product and diminishing customer base. We as a group have learned that the strength of the company depends on having effective research and development strategy. It is important that the organization must have a knowledge management strategy, which involves detecting and incorporate innovative products to market. Therefore, their R & D activities must be related to competitive strategy and leadership skills to compete with better products or services (Baumeister & Tice, 2009).

When it comes to the business environment of today, it has said to be changing at a rapid pace. Every organization regardless of its genre and magnitude need to ensure that they manage innovation in an effective and efficient manner in order to have a competitive edge and HomeStar is no exception. For the long term sustainability for the business might determine by the ...