Innovation and Change Management

Companies that successfully present in addition successfully act swap INNOVATION & CHANGE MANAGEMENT MHN221935-12-A Malgorzata Glowacka S0915718 International Tourism & hospitality Enterprise knowledgeability and diversify management have been and continues to be an in-chief(postnominal) study on a number of directs. It plays signifi erectt part in economic growth as well as it is vital for firms endurance and development. new-made ideas, naked approaches and new ingatherings become critical guidelines in organisational strategy, oddly for managers and business leading. fit to The Boston Consulting Group (2010) employers ranked intent as a strategic precession with 26% citing it as a top priority and a further 45% ranking it as a top-three priority. Organisations much(prenominal)(prenominal) as Apple or Google adapted this tactic and thanks to their responsibility management of alter, now argon recognized as one of the well-nigh revolutionizing and prosperous c ompanies in the world (Business Week, 2010). It proves that successfully innovating companies are the winners and they play study role in industry market.Therefore, this essay aims to critically evaluate the affiliation between vicissitude and throw management. The term of entry is hard to countersink as it can mean different things for different people. According to Druker (1985) innovation is the specific tool of entrepreneurs, the means by which they exploit changes as an opportunity. westside and Farr (1990) geted out that organizational innovation can be characterized as a tangible product, process or procedure in spite of appearance company and something what is new to the social setting within which it is introduced although not necessarily new to the somebody introducing it.They also exanimated innovation being more intentional rather than accidental, principally aimed at producing benefit to the organization. Traditional categorizations of innovations divide them into four types (Tidd and Bessant, 2010, Fig1) -product innovation can be a change in the function or feature of speech of a product such as Window Vista replenishment XP. This merciful of innovation is intended to improve the function of the offering to puddle sales more likely -process innovation is found on transformations in the ways products/ services are created and delivered like for e. g. nline banking system which allows customers to manage their finance. This kind of invention introduces new, or significantly improved, method for production or address of output that adds value and better performance -position innovation target changes in market or customer base for a product or service. This kind of strategy change meaning of a product in customers eyes like for e. g. four-wheel cars which originally were utilize for off road work became fashionable family car -paradigm innovations are based on changes in how companies frame what they do for e. . Air Canada (the la rgest airline of Canada with plan and charter air transport) launched a discount, new low-cost international flattop in Vancouver (The Globe & Mail,2012) Fig 1. Types of innovation. Adapted from Tidd and Bessant, 2010 foundations are often class as either radical or incremental (Gallouj and Weinstein, 1997). Radical innovations are generally based on a big change in development that modifies the competitive market and it may results in new markets and product opportunities.Good example of radical innovation is Apple with their first PC Lisa which had pictorial interface. The innovation, despite its limited success, was universally recognised as being outlying(prenominal) ahead of the competition and it took years for some of the advanced features of its operating system to be incorporated in competitors operating system (Rayna and Striukova, 2009). An incremental innovation is a term used when there was a minor change to an existing technology like for e. g. in case of Apple and their iPod.MP3 players had been dumbfound in the market before Apple introduced iPod but the company tranquilize succeed because they made better product, which was easier to use, looked more solid and more harmonic compared to other MP3 players (Rayna and Striukova, 2009). organisational change, like innovation, is hard to specify. It can be depict as any alternation or modification, which occurs in the overall work environs of an organization. Moran and Brightman (2000) defined it as the process of continually renewing an organizations direction, structure, and capabilities to serve the ever-changing reads of external and inherent customers.It tend to way on the management of formally planned changes and it is indicating a macro- level approach, which is come to with organisation as a whole (King and Anderson, 2002). Due its complexity, many researchers categorize organizational change in different ways, for e. g. Pettigrew (1987) separated it into strategic and non-str ategic change while Goodstein and Warner (1995) divided it into incremental and radical change. However the starting point for discussing variations of change is Grundys (1993) three variations of change. The first, smooth incremental change changes easily in a systematic and predicable way.The second pastiche of change Grundy legal injury bumpy incremental change. This is characterized by periods of relative calmness discontinue by rushing in the pace of change. Grundys third variety of change is discontinuous change, which he defines as change which is mark by rapid shifts in strategy, structure or culture, or in all three. There are several drivers and models which clarify the need for change. just about of them are grouped into external drivers or subjective drivers (Proehl, 2001). extraneous are those forces that are outside the organization, usually it is an economic, political, socio-cultural or technological driver.The internal drivers are those forces within the orga nization, which may include finance, limited skill level of employees, changes in leadership etc. Another example, presented by Anderson and Ackerman Anderson (2001) describes seven of import drivers of change, which move from what is external (environment, marketplace, organization) to what is internal (culture and people). This model mainly focuses on leaders and management role as they are clearly more alert of external domains and thy play the most important part in internal domains.This is their job to implement any changes in culture, behaviour and mind-set within their company and if they will fail in that, the change will also fail. It can be assumed then, that change is about innovation and innovation is about change. Williams (2006) stated that to successfully manage innovation, company need to be good at managing source of innovation and managing innovation during discontinuous and incremental change. Once again Apple is the perfect example of company efficaciously han dling innovation and change at the same time. They do it for e. g. y managing leadership within organization. Tidd and Bessant (2005) noted that leadership strongly influences the success of change and innovation. For Apple the key role in the company played Steve Jobs and his tedious leadership My passion has been to build an enduring company where people were make to make great products. Everything else was secondary. Sure, it was great to make a profit, because that was what allowed you to make great products. But the products, not the profits, were the motivation. Sculley flipped these priorities to where the goal was to make money.Its a keen difference, but it ends up meaning everythingthe people you hire, who gets promoted, what you discuss in meetings. Isaacson, 2012 According to Hughes (2006) leading change is naturally about influencing groups and individuals, therefore leaders of change need to understand people. And that is what Jobs could do. He understood that cust omers dont manage what they want until it is shown to them. He implemented among his employees the desire of perfect design as to him nothing could be further from the meaning of design. Design is a fundamental soul (Isaacson, 2012).To conclude, the concept of innovation and change is fundamental to business success. It is viewed as being extremely important for company survival and future development. Organisations such as Apple can prove the point that companies which successfully innovate also successfully manage change. References Anderson, D. , Ackerman Anderson, L. , 2001. Beyond Change Management ripe(p) Strategies for Todays Transformational Leaders. USA Jossey-Bass/Pfeiffer Drucker, P. F. , 1985. Innovation and entrepreneurship practice and principles. New York Harper Row Gallouj, F. , Weinstein, O. , 1997. Innovation in services.Research Policy 26, 537556 Goodstein, L. D. and Warner, W. , 1995. Creating Successful Organization Change. In Managing organizational Change. Warner (ed. ). pp. 7-9. New York American Management Association Grundy, T. , 1993. Implementing Strategic Change. London Kogan Page Harsh, P. , 2011. organizational Change. 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The curse of the first-mover when incremental innovation leads to radical change. In Int. J. Collaborative Enterprise, Vol. 1(1) The Globe and Mail. Air Canada shuffles small-plane fleet, adds large-minded body jets. online Available from http//www. theglobeandmail. com/globe-investor/air-canada-shuffles-small-plane-fleet-adds-widebody-jets/article4580211 Accessed 15th October 2012 Tidd, J. , Bessant, J. , 2011. Managing Innovation Integrating Technological, Market and Organizational Change. England John Wiley Sons Ltd. The Boston Consulting Group, 2010.Innovation 2010. A Return to Prominence and the Emergence of a New World Order. online Available from http//tobiaslist. files. wordpress. com/2010/06/innovation-2010-bcg. pdf Accessed 15th October 2012 The Business Week, 2010. The 50 Most Innovative Companies 2010. online Available from http//www. businessweek. com/interactive_reports/innovative_companies_2010. html Accesses 15th October 2012 West, M. A. and Farr, J. L. , 1990. Innovation at work. In Innovation and Creativity at Work Psychological and Organizational Strategies. UK Chichster Williams, Ch. , 2006. Management. Canada Thomson South-Western