Strategic Change and Innovation

Strategic Change Innovation

Introduction

Currently organizations are active in an environment that has changed significantly in recent decades. These variations are derived first from transformations in the economic and social partners and the growing complexity in their relationships and dynamism of environmental elements, such as competition, technology, etc. Thus, companies increasingly are trying to adopt strategic change through innovations (Christensen, 2003). There is strong relationship between strategic change and innovation strategy but before getting into the detail we will describe strategic change and innovation. Change is a gradual step translation process of taking organization to the next level with existing ideas and concepts. Strategic change is considered as the difference in form, quality or state over time, the lace, adaptation or adjustment of an organization with its environment (Huyghebaert, 2004). Changes in this setting include: changes in the content of the business strategy determined by its scope, deployment of resources, competitive advantages and synergies, and environmental changes leading to the organization to initiate and implement changes in the content of the strategy. On the other hand, innovation is the process of developing new ideas and concepts and their application in the organization.

Today, business setting is characterized by technological change and extensive competition; competitive advantage can be attained by organizations if they maintain high level or innovation. In order to effectively understand the link between innovation and strategic change, we have divided this paper is divided into two parts in which part A would discuss the difference between operational and tactical planning and difference between levels of corporate planning with the examples of management involvement, alternative time scaling, significance of changes, and decision making levels. On the other hand part B will discuss the concept of innovation and its impact on growth strategies with respect reference to Joseph Schumpeter's idea of major innovation. In this long wave business cycle theory would be the main focus. On the other hand short and medium range business cycles would not be completely avoided. The purpose of this paper is to let readers know about the effective relationship between strategic change and innovation as strategic change and its effects are increasingly in vogue.

Discussion

Difference between Operational and Tactical Planning

Planning means setting goals to achieve, and the methods to be used, determine the actions, resources and responsibilities required to achieve a desired result. Planning is a process to achieve the Strategic Vision. When we mention strategic planning, we refer t o the plan that establishes the nature and direction of an organization, emphasizing the conditions expected to prevail in the future. Development of strategic plans has been a significant part of businesses. There are several type of business playing out to which two are the most common that includes operational planning and tactical planning (Afuah, 2003). Both tactical and operational planning effectively work to implement effective strategy in the organization. Though there are some similarities between tactical and operational planning, but it is very important to understand the difference between these two planning because ...