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How to create an organization that survives longer than the first good idea, which has built its success? The increasing complexity and volatility of the environment makes that companies must constantly redefine your business, products and processes change. Innovation increasingly finds itself on the list of strategic priorities. No action in this area is increasing the risk of losing market position. Simultaneously, the way in which is formed one of the innovations fewer known phenomena organization. Understanding what the company should do (and what not) to create an environment of continuous creation and implementation of new ideas, can be important for their success. Research Larry Keely - founder of Doblin Group - shows that in recent years the growth rate of the market value of innovation leaders in their respective industries, such as Nike, Pfizer, DaimlerChrysler, Starbucks, Home Depot, amazon.com, was more than twice higher than their biggest konkurentów1. Is the process that determines the survival and rate of development of the organization, can be left to chance? If the business environment requires strategic orientation on innovation, how it can develop the ability to create, develop and implement new ideas, making innovation their core competency? As the professor. Krzysztof Obłój, being an effective business strategy is to create a unique company, allowing both company employees and environment clearly differentiate the company from competitors. The aim is to clarify the identity of the business. The essence of strategy is simple: you have to be better than your competitors or act differently than they do, and in another area Market Act2. Innovation strategies to determine to what extent and how to use innovation for the purpose of achieving superiority strategicznej3. The inclusion of an innovation strategy for the company's strategy is to help focus the efforts on creating the foundations for a future position of the company. The predominant objective of innovation should be a balancing of the portfolio of products and maintain competitive advantage, leading to secure the company's financial influence and build value for shareholders over the long term. Thinking about innovation is not limited to research and development of new products, but it is increasingly becoming a way of looking at the whole organization. There are several ways that you can choose to reap the benefits of innovation. Now we will look at the most important of them: innovative products, process and business model. Although this division is fluid, certain differences are such that in the literature usually taken to be just such a classification of innovation. product innovation Shortening product life cycles are forcing companies to systematically innovate product. Companies must strive to create a properly balanced portfolio, which is still powered by introduced and tested in the market news. Marketing innovation requires diligent effort and often substantial investment, enabling the promotion of a product or service to a broad market. To be able to afford the expenses associated with the development and marketing innovation company, begin to work on them early, allocating part of the proceeds of profitable products to ensure participation in future market opportunities. Analysis of the information submitted by the companies that participated in the survey the Department of Management Theory SGH4 indicates a significant correlation between the share of new products in the revenues and the rate of growth companies. Companies that grew the fastest (average annual revenue growth of 34%) declared that the engine of growth was mainly the introduction of new products. It allowed the company to acquire new customers, while maintaining the loyalty of existing customers. The slowest growing companies or those whose turnover decreased (average revenue drop of -1.6%), significantly less likely to introduce new products. innovation process Improving process efficiency - whether in the form of optimizing existing processes, or building a streamlined business model - is to ensure organizational excellence and reduce costs for the company. Although it is sometimes not clearly visible to the customer, the radical innovation process, can result in obtaining extraordinary profits and distancing competitors. The firms surveyed recent years have brought a lot of innovation process. Managers were forced to increase the efficiency of operation and the freed capacity may give them an advantage in the future. The respondents, however, believe that these changes will not be one-off, expecting a similar scale organizational changes also in the next three years. Innovation business model Innovation business model is the most complex embodiment of innovation - combining the often radical change processes and the creation of markets for new products. They require the greatest courage, determination and willingness to experiment, they usually connect to the negation of the accepted modes of thinking and rejection of the existing stereotypes in the industry thought. In practice, strategic planning is hard to resist such a simple, linear extrapolation of the past. As he writes in reengineering and its aftermath Michael Hammer, a stable and predictable business conditions favored style of planning that was almost Soviet in its rigidity. At the core of [such management] was stuck assumption that the major change is a phenomenon that occurs once in a thousand years, which for the first time revealed a long time ago when setting up the company, but which can surely now be considered as belonging to the przeszłości5. Created in enterprises strategic plans often rely on repetition so the assumptions of previous years. Far-sighted analysis of the scenario, allowing the company to prepare to compete for market opportunities in the future, are, unfortunately, rare. Formulating a strategy of innovation Setting targets for innovation in different areas of the company should be a regular part of strategic planning. Operating in various industries companies usually have different priorities here - well, studies show that the consulting firm Doblin Group (www.doblin.com). As the figure shows Doblin Group, innovation is not necessarily limited to changes in the same portfolio. A turning point may have such as changes in the distribution channels, pricing strategies, brand image or experience related to the purchase (customer experience). Also, changing the core or supporting processes can bear fruit to create a new quality in the market.
The companies who fail to develop innovation are on the verge of prepairing to fail. Companies failing to develop innovation fail in inspiring their customers, consumers, staff, brands and in every sphere of their work scope in the long run.
Innovation provides a sense of freshness and it leads to perpetual growth and its like bloodline for any organization.
.... the organisatiion that don't promote innovation risk losing all, sooner than later, ...their identity, branding, novelty and corporate image. Kaput!
Organizations failing to promote the culture of innovation will fall in the trap of "business as usual" ,, or the "normal" / "standard" way of doing things ..
My point of view falls in the same line as views expressed by most of the participants
I do agree with the answer given by Mr.: Nishant.
AGREED WITH NISHANT DESI.......... HE IS MASTER OF THE SUBJECT,,, GOOD LUCK NISHANT & SALAUDIN
Innovating strategy assure the continuity and progression, otherwise the organization will undergo the steady level or even decline accordint to the kind of production.
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