INNOVATION STRATEGIES

Effectiveness of Innovation Strategies in Organizations

Introduction1

Discussion1

Types of innovations2

Process Innovation2

Product innovation3

Service Innovation3

Business Model Innovation3

Selection of Innovation4

Incremental Innovation4

Radical Innovation5

Innovation Strategy5

Proactive Strategy6

Active Strategy6

Reactive Strategy7

Passive Strategy7

Financial Concerns with Innovations7

High Risk and Uncertain Outcomes8

Effects on Financial System9

Innovation and the Competitive Advantage9

Case study/Examples related to Innovation Strategy9

Innovation Strategy in Motorola Company9

Innovation Strategy in Apple Company10

Conclusion11

References12

Effectiveness of Innovation Strategies in Organizations

Introduction

Innovation strategies have been a major source of interest to organizations in order to achieve excellent source of modernization in the world market. Organizations working in the competitive environment tend to imply innovations in their strategies to acquire globalized impacts with competency. The innovative approach has therefore been under constant debate regarding its effectiveness as it is conceived as high risk. Organizations do fail in their in their strategic planning and cause severe damage to the financial position. This reveals that organizations must be cautious with their innovative strategies.

Innovation is basically the capability of defining and developing new products and services and then delivering them to the market. It is considered as the basic element of creating value in companies and enabling companies to acquire competency. Innovation is intrinsically an extremely cross-functional activity (Bordea, et.al n.d pg. 1). Its accurate working creates productive competency in t he cost of development, value of product, quality, performance and the time to market. The factor of innovations in organization's strategies carries the development of product mainly, including the functions of sales, purchasing, customer support, strategic planning, and most importantly the factor of financing is greatly affected by the innovative efforts (Bordea, et.al n.d pg 1).

Discussion

Innovation is desirable to any organization aspiring to attain competitive advantage. The inventions are integrated in the form of newer and attractive products to be commercialized. For instance, a solar fan cap is innovation as the fans and the cap solar cells were existing inventions, but those were integrated together and came up as an innovation. It requires the harnessing of the past with powerful ways.

Over years, the management innovation has been a matter of study to researchers and scholars. It enables the organization in achieving the goals (Van, 2003). The innovations of an organization are more process centric, referring to the newer methods of working in areas. (Tushman & Nadler, 1996 pp. 74-92). These areas when accompanied by innovative efforts enliven the competency of the organization (Shieh, 2010 pp 395-411).

Types of innovations

Innovations are significant in the success of an organization. Organizations implement different types of innovative methodologies and theories. The iterative nature of innovation demands novel ideas leading the organization to success. These ideas can never be implemented with random approaches as huge failures can turn back with a great source of embracement. An organization can undergo the following innovations with cautious evaluation (Bar, 2005).

Process Innovation

Process innovation is simply the variation in the execution of a specific job. It has an innovative approach in carrying out the already done things in a better way. According to Schumpeter (1934), the process innovation enhances the sustainability of the newer product in the market with its ...