电子商务论文 The General Issues On Strategic Innovation

电子商务论文 The General Issues On Strategic Innovation

电子商务论文 The General Issues On Strategic Innovation

Survival and growth are the two main objectives of any organisation in today’s competitive world. Every organisation tries to be different and accelerative from their competitors to achieve their goals and become market leaders. This starts the process of launching new products and services, value additions to current products and services, rigorous marketing activities and cost-saving measures to perform better and increase profitability. All these activities are a result of innovation in an organisation.

According to Mulgan and Albury (2003) “Successful innovation is the creation and implementation of new processes, products, services and methods of delivery which result in significant improvements in outcomes efficiency, effectiveness or quality”.

The process of innovation of searching for opportunities and avenues of innovation, selecting the best options, implementing them and reaping the benefits of the implementation enables the organisation to reduce costs, increase efficiency, increase sales and ultimately increase profitability. But the main reason for innovation is customer satisfaction. Unless the customer is not satisfied, the organisation cannot say the innovation applied has been successful.

Innovation can be applied in each and every activity of an organisation. Just a small change in the manufacturing process of a product can be an innovation; a small change in the service delivery process can be an innovation; any change in the management of the company can be an innovation. These cumulative activities help the organisation to create a competitive advantage over the competitors.

Innovation can take place in any organisation irrespective of the size or status. A small grocery store on the corner of the road or a departmental store giant like Tesco with a service like home delivery can increase its business. Micheal Dell started a small personal computer assembling company in the year 1985 providing cheap and customised computers to consumers at a price lower than branded computers like IBM or Apple at that time. General Electric Company started with manufacturing incandescent bulbs but today, with constant innovation is a leader in healthcare, energy and technology. Air Deccan in India was the first airline in the country to offer low cost airlines with no frills attached to the services. It relied on reduced costs and overheads caused by services like catering, baggage allowance, cabin crew low turnaround time, fleet of small aircraft which would result in higher load factor. Such a new service gave them a competitive advantage over the regular full service airlines currently in the market and made air travel affordable. Toyota Motor Corporation was the pioneer to innovate the Just in time and Six Sigma method of production which enabled them to reduce wastage and inventory thus ultimately reducing costs. Apple Computers Inc. has been in the computers business since decades together with their ups and downs but with the launch of Mac OS and Ipod and Iphone products, apple became a key player in the respective markets within a short period of time. There can’t be a better example than 3M if innovation is being discussed. 3M produces over 55000 products with numerous patents and trademarks registered worldwide. The company is so dedicated towards innovation that 30% sales of the company comes from product innovations in the past 3 years.

These examples illustrate how important is innovation is for companies from every sector to sustain the tough market conditions and remain competitive in an evolving market place while maintain smooth customer relations.

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