Introduction
Innovation has been the primary strategy from the first decade of the twenty-first century up to now. It helps many organizations over the world to grow faster as well as increase their market share and enhance and maintain their corporate positioning (2000).
As of today, for any organization to sustain their success, they must master the game of understanding how and when they will launch the initiative of revolutionizing innovation and revolutionizing organizational change (1997). As the number of vehicle variants flourishes as well as the demand for other vehicles and components of innovation grows, the ability of different organizations to identify and launch new products and improved or enhanced their available services has become one of the most important criteria for success (2005).
Innovation and organizational change comes hand in hand in order to attain and maintain success of different organizations in the world. Both of these aspects help different industries and enterprises to re-evaluate the products and services that they are offering as well as the current corporate culture that they are implementing such as their rules, policy and protocols. It is also believe that innovation and change is the only way to endure the pressure in face of rising competition ().
Innovation allows businesses to define and develop new products and services and eventually deliver them to market while change is the process of improving the overall performance of the company by focusing on their internal structure. Both are a great source of value creation in businesses and a vital enabler of competitive advantage. It is also inherently a vastly cross-functional activity that, when it works well, generates a beneficial pressure between competing objectives of development cost, product value, performance, quality and time to market ( ).
Innovation
Innovation is the overture of a fresh thing or method and the quintessence, permutation or fusion of knowledge in unique, pertinent and valued new products, processed or services (2003). All innovation begins with inventive ideas and end with the execution of creative ideas within the organization. Ingenuity by individuals and teams is a starting point for innovation; the first is essential but not adequate condition for the second (1996). It is just like many business functions, it is a management process that requires specific tools, rules and discipline ( 2006).
Innovation is the representation of the particular tool that is used by businesses as the means of exploiting change as their opportunity for a different products or different services (2006). It involves changing the value and satisfaction that is obtained from the company by the customers cited in (2006). (1990), describe that innovation adoption is more likely to occur when organizations is facing delimma about its internal and external environment about its high needs about change (2002).
Innovation is important because it is the greatest weapon that can be used by any business and organization against the constant change and increasing challenge from the changing needs of the customers, fast development and improvement of technology and growing competition due to globalization (2006).
Innovation is important because it serve as a continuous improvement to the side of the business. It will help the company to maintain their position in the market. Especially today that customer preferences, tastes and demands are one of the major challenges that all of the business are facing. New and improved product can easily catch the attention of the customer. It will also add to the interest and loyalty of the customer to the company. It is also important factor because we are now already facing the era of globalization. This large market will offer a vast and immeasurable target market therefore; vast ideas and innovations are also needed in order to cater to the demand and satisfaction of the market. Innovation also enables those products and services with short life cycle to maintain the stability of their business as well as to continue the flow of business.
Innovation does not only focus on the technological side of the business it also focus on the variety of products and services that they are offering. It focuses on how the business will catch the attention of their customer and how will they attract their market to come back and ask for more.
Organizational Change
Organizational culture can help provide competitive advantage for any business and company; however it can also create obstacles to the innovation and change that is necessary for the company to succeed (1997). Nowadays, the world of business is facing the significant changes in technology, regulation and competition, organizational change is necessary to follow the fast flow of change in the internal areas of the company. It will include simultaneous transformation shifts in the firm’s structure and systems as well as its areas regarding its culture and competencies (1997).
(1985) wrote that change in any organizational culture and management is normal and healthy () (2006). Change in organization will help the company to adjust to the current situation of the global market as well as adjust their culture and other internal issues to the growing demand of innovation. Application of innovation also means implementation of change through different important areas of the company.
Procter and Gamble
Procter and Gamble started its official operation on August 22, 1837 as a store that sells soap and candles in Cincinnati, Ohio. The first product that it had branded was The Moon and Stars. It was one of the few companies that have started to launch a department that will study and analyze the behavior of their customer regarding their product.
Procter and Gamble is one of the companies that have used innovation and organizational change as a tool and weapon to succeed. Its first innovation in terms of their product is the launching of their Ivory soap in 1879, it was a big hit during that time and enables the company to produce 200, 000 cakes of the said soap due to the demands of their customers. It was also one of the first few companies that have engaged in extensive marketing strategy targeting their national market by building different sales branches across the country (1983).
The biggest innovation of the company ever made was its introduction of the Tide detergent just after the World War II. It was the result of their extensive research about the chemical compound that will pull out grease, oil and other stain from the clothes. This major innovation helps to change the laundry habit of the Americans. It also gave them competitive advantage and edge against their major competitor that time, the Colgate-Palmolive (1983).
One of the major organizational changes that the company had implemented was the launching of Organization 2005 under its CEO, . It main objective is to have a cultural revolution that will cater to the position of the company in the global market. The plan was launched on January, 1999 was considered as the boldest change the company ever made in its entire history. It helped to remove and renew policies such as the dress codes. However, the launching of the said plan was not that successful and created uncertainty of the company’s local and global position. Because of the said failure, Jager have decided to resign in 2000.
After the resignation of replaced his position. The main objective of the new leadership is to continue the missions and goals of the Organization 2005 but making changes about the aspect of the plan that did not work out well during the previous management. Under the new management, the company again faced new organizational change; it focuses on its new organization design. It created different interdependent global business units, market operations and global shared services strategy that will help them to attain interdependent geographic profit center.
This plan helps them to target global market but working locally. By doing this, it enables the company to have an autonomous authority for each country that they are operating to innovate and manage on their own. It helps them to meet the demands of their customers across the world by meeting their demand with accordance to their taste, culture and preferences.
The Internet, globalization and the consolidation of the retail production have combined to generate a dynamic global marketplace ( 2000). The company has decided to become a global company that operates like a small local businesses that operates in different part of the world for them to survive the present situation of the global market environment.
Because of this major changes and innovation, the company have maintained it position in their local position in US as well as its position as one of the biggest and most successful multinational companies in the world.
Credit:ivythesis.typepad.com
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