dissertation topics management   Role of Innovation in Application of Systematized Project Management: UK Companies


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Role of Innovation in Application of Systematized Project Management: UK Companies


The author wishes to thank several people. I would like to thank my tutor, Mr. .......... for his continuous support, knowledge and ideas helpful during the completion of the project. I would like to thank my parents for their unending love and support. I would also like to thank my supervisor Mr. .................... for his help and for his direction with this project. Last but not least, I would like to thank employees and customers of HSBC organisation who helped me continuously in developing knowledge about the dissertation.



Innovation is adopted by very organisation as it is increasing helping organisation in uplifting the quality of production system. The competition level, that is ever increasing is forced to have much impact on high quality products in large volume so that more customers with better quality can be attracted. Innovative strategies are supposedly believed to be capable of bringing more synchronised and structured form of study. In the particular study of the research work, study related to innovative strategy is focussed where analysis related to UK firms will be considered.

Research process in the present dissertation will be related to critical evaluation of innovation in bringing synchronisation within production system of an organisation. With the help of primary and secondary sources, the researcher will try to understand the positive impacts such as standardisation and employee satisfaction due to involvement of innovation in the project management.

The researcher that will help in understanding the research topic in a more detail form will apply appropriate research tools and techniques. Depending on the conclusion of the research study, the researcher will also list the recommended areas so that better quality of research process can be obtained.




1.0 Introduction:

Many of the organisations recognises explicitly the importance of the forms of innovation beyond the invention of the new (technological) products and points changing face of innovation that includes services, business processes and models, marketing and enabling technologies (Tinnirello, 2000). Research and development is not a good indicator of innovation or knowledge generation in many services sectors; a high level of innovation activity is often not based on R&D expenditures. Organisations in the trend of adopting innovation seek various ways that can help in better application of the strategy (Chiesa et al. 1996). Project management in an organisation is helpful in increasing the production system at a much improved level. However, Bunnell (2000) opined that competitors also opt for innovative strategy and sustain in the market. Application of innovation strategies are a source of providing systematised and synchronised form of strategic tool that can aim in application of the modern management tool.

Project managers are adopting innovative concepts as it is helpful in solving problems like global competition, economic crisis, high cost of production, technological issues, customisation and others. Markides (1998) pointed that innovation in a project management is trending up in UK market as it providing alternate sources of sustaining in the market with much effectiveness. In the particular research work, the researcher will try to analyse the impact of innovation on the project management with reference to UK companies that will provide better information and knowledge about the topic. With reference to UK companies, the researcher will aim to gather much information and existing trends in the market helping in closer view of the innovative strategy. Application of extensive review will help the researcher in understanding the existing trends that will also be useful in study of the current market. Project managers are trying to decrease the competition level with the application of innovation in the production system so that market knowledge can be improved effectively.


1.1 Research Aim and Objectives:

Existing trend of innovation is helping many organisations in better adoption of competiveness that is used to gain better market knowledge. In the particular research study, the researcher will aim to understand the role of innovation in application of systematized project management with focus on UK companies. Project management process will be focussed to have enhanced study work for studying role of innovation in contemporary times.

Research objectives for the present work will be used for increasing the information about the topic and will accordingly focus on the listed objectives that will lead to better level of study and research as per present research topic.

  • To observe the impact of innovation in a production system of an organisation
  • To critically evaluate the areas where innovation can help in bringing positive changes in operational activities of UK companies
  • To examine the innovation strategies and its role in project management techniques
  • To address the challenges in implementation of the innovative strategies and project management of UK companies
  • To analyse the scope of improved project management system within an organisation

1.2 Research Questions:

During the process of dissertation study, research questions are useful in gaining adequate knowledge about the concepts useful in studying as and when required. To gain information related to innovation and its application in project management, the researcher has framed few research questions that can help in better level of the analysis by giving detail information for each question.

  1. What are the areas via innovation that can help in bringing positive changes in operational activities of UK companies?
  2. How innovation strategies can help in improved project management techniques?
  3. What are the possible challenges in implementation of the innovative strategies and techniques?
  4. What are available scopes of having improved management system within an organisation?

Above stated research questions will help the researcher in locating the research areas that will provide research platform for success of the concerned research topic.


1.3 Background of the Study:

The particular section Innovation of the report provides an overview of innovation. This section emphasise on the importance to the company, economy and in various types and classifications of the innovation. In regards, innovation is one of the key factors, which contributes in national economic growth, competitiveness and higher living standard. Innovation is also stated as the heart of knowledge based economy (Wolfe, 1994). Moreover, there are many correct definition of innovation but none of the definitions is complete. As stated by UK’s Department of Trade and Industry (DTI) the innovation is the correct and successful exploration of new ideas and hence it becomes a key business process to compete effectively in the increasingly competitive global environment (Gulati et al. 2000). Concept of innovation in an organisation gives focus on project management that helps an organisation in better adoption of the strategies.

Innovation differs from one sector to the other sector. The pattern of innovation, which is there in the manufacturing sector, differs from those that are there in the service sectors (Atkinson, 1999). Innovation or change in an organisation may implement in the innovation in the service as well (Patel, 2008). In the opinion of Hobbs (2009), a broad vision of innovation and its importance is an essential element of the manufacturing industry, service industry even the creative industry, and the public and the third sector as well. As a significant economic variable, a lot of attention is attracted to measure the actual innovation. As there are many complexities in measuring the innovation, so it is tough to measure the innovation. The actual economy’s rate of innovation is depending upon the range of the activities and the links lying between them. Many of the companies do take the lead but do not innovate in isolation. A multitude of organisation is involved in most of the innovations. This is specially found in the case of the most knowledge-intensive and the complex technologies (Figg, 2000).


1.4 Rationale of the Study:

Competitive market is increasing threat for every organisation as retaining customers is becoming a crucial topic in the contemporary times. A market amidst competitors involves various strategies that can be helpful in better organisational performance. Customers under existence of various companies are often attracted to organisations and fail to become loyal consumers of any organisation. In lack of loyal customers, an organisation faces crucial times that has to be tackled and earning of new customers has to be maintained on a continuous basis. Competition level in each sector forces organisation in improving the project management process and ensures customers are retained. Project management are supposedly helpful in bringing an edge to the organisational operations where according to improved technology and production process, cost is maintained at low level. Application of innovation provides a competitive edge to the organisation and helps in increasing the organisation’s position in the market. Innovative ideas in a project are helpful as it provides much option to the organisational development in availability of alternatives. Project manager focuses on better adoption of innovative strategy as it provides a development platform to the production process. An organisation during the project management process examines the economic climate that helps in selection of the most suitable strategy. Business performance in an organisation is ideally supported during the application of innovation as it helps in increasing and improving the level of organisational level.


1.5 Purpose of the Study:

Study of innovation in the particular study is involved with subject to project management that is helpful in successful management of the internal environment. With study of the selected topic, the researcher will aim to gather information related to innovation that can help in understanding impact of innovation. Future application of innovation will be studied in the selected study helping in promotion of the organisations. Innovation in an organisation is helpful as it brings sustainable environment for an organisation. UK companies under influence of innovation will be observed that will increase the adoption strategic influence in the project management process. Inclusion of innovation in project planning is ideal as it creates availability of varying options helpful in bringing success to the organisational development. In the particular research study, the researcher will evaluate various perspectives that can be utilised in an organisation during the project management process. The dissertation study will involve examination of various innovation strategies helping organisation in development and improvement process.


1.6 Structure of the Study:

Structure of the entire study will be mentioned here so that readers can have a through look at the contents and accordingly gather information about the areas that will be covered in each chapter. A synchronised form of study is supported via this section that also helps in presenting various perspectives for study of the research topic.

Chapter 1: Introduction

The introductory chapter will provide basic details about the topic to the readers helping in gathering of relevant and required information to have better knowledge about the study work. Research aim and objectives are stated in the chapter to have special focus on the concerned areas and accordingly detail study of the topic is carried forward. Apart from that, rationale and background of the study will allow having detail study for basic of the research topic and accordingly information can be gathered.

Chapter 2: Literature Review

Related theories and concepts of the research topic are mentioned in this chapter that will help the researcher in gaining proper information about the theoretical concepts and will be useful in further conducting practical study as well. Critical study of this chapter will help the researcher in looking at different standpoints for each theory and will help in better analysis of the adopted concepts.

Chapter 3: Research Methodology

Research process is used in gaining more details and information that helps in understanding dissertation study at a better level. This chapter will describe the research tools and techniques used to gain information and viewpoint form the involved respondents or sample study. Based on justification, appropriate selection of research tools is mentioned so that a standard form of research process is established.

Chapter 4: Data Analysis and Interpretation

Data gained during the course of the study will be observed and analysed so that as per research objectives, information can be used. Collected data as analysed will be helpful in giving better details of the research topic. Practical knowledge gained during course of the study will be helpful in providing more details related to the topic and will penetrate in a more effective way.

Chapter 5: Conclusion and Recommendations

Based on the information gained during the process of data analysis will be helpful so that a concluding point to the dissertation can be provided. A final conclusion to the dissertation will help the readers in understanding the extract of the study and further will provide details that can help in bringing success to the research study. Innovation and its impact on project management are stated in this chapter.

1.7 Conclusion:

Innovation within an organisation is helpful in providing efficiency to the organisation that also levels up the quality of performance as well. Project management system needs recent and frequent up gradation so that organisation can gain better market position and customers can be dealt in much improved manner. Product quality is continuously focussed during the innovative management and helps in satisfying customers at better level. An organisation with the help of innovation is trending up the production process, as project managers understand the application of innovation so that competition can be minimised. In presence of innovation, project management is included with better level of management strategies helping organisation in improving production level. The chapter tried to list the research aim and objectives that will be analysed in later chapters and will help in gaining successful dissertation work. Project management within an organisation needs to be implied with successful strategies that can also bring standardised level of performance for the concerned organisation.


Chapter 2


2.0 Introduction:

In this chapter, the researcher will try to describe the related theories and models so that a brief study and detail structure of the related concepts can be observed. With the help of various models, the researcher will have better deeper level of study so that enhanced quality of research is obtained. Deeprose (2002) noted that literature related to innovation in a project management will help in understanding the potential of the applied concept and further can be helped in conducting qualitative research project. Viewpoints and standpoints of various authors will provide a much clear picture for each concerned topic. In the particular chapter, the researcher will try to add related concepts and theories in the research study so that quality of the study is improved and better information regarding the research topic is gained. Impact of innovation in a project management is crucial for every organisation as it has the potentiality of increasing organisational development and further ensuring better customers’ satisfaction (Lock, 2007).


2.1 Definition of Innovation:

Innovation is the most central part of the policy debate that how to maintain a strong economic growth in the period which is defined by globalization of the competition while managing a plan as well as the major fiscal and demographic challenges. Moreover, Heerkens (2002) observed that there are many attempts are done to systematically draw on the concepts, theories and empirical evidence are hence accumulated over three decades of innovation that is studied in managing the plan to inform the policy debate has been done limitedly.

The main emphasis lies in understanding the importance of innovation as a management plan is that, it gets shaped in the particular manner and way in which we tries to manage it (Hansen and Birkinshaw, 2007). Over time, this understanding has a great deal in management plan. Earlier models that is both explicit model and most importantly, as described by Al-Harbi (2001), the implicit mental models with the help of the managing the process, has seen the innovation as a linear sequence as a functional activity in the managing the plan. A rise to applications and refinements are given either by the new opportunities, which eventually found their way to the market place Mehta (2007), or else the market that signalled the needs for some new things and hence drew a new solutions to the problem (Fuchs et al. 2000). The limitation of tan approach of the innovation in managing the plan is clear; in general, the practice of innovation is a coupling and is a managing process in which the critical element is the interaction. At some places the ‘push’ dominates and somewhere the ‘pull’ is at higher but in a successful innovation the requirement is in between the to, that is the ‘push’ and the ‘pull’ too.

2.2 Innovation Strategy: Definition

Companies opting for innovation need to understand the market trend and accordingly the best innovation strategy have to be selected. Bunnell (2000) commented that innovation strategy has to be applied based on approval of several parameters so that acceptance level within the organisation can have broader scope of improvements and developments. However, Davenport (1993) commented that an organisation with the help of innovation strategy is better capable of understanding the current status of the market and the organisation and accordingly selection of strategy is dependent. Processes of innovation strategy need surpassing through various phases so that implementation cannot be considered on the parameter of the quality.

2.3 Innovation Strategies: Process

Nowadays the whole world is facing noteworthy ecology, fiscal and communal confronts. As there is no single instrument, which will hold all the answers in it, modernization or innovation is a key constituent of the entire rendezvous, which will improve individual’s superiority of management power. Currently recovery from the financial and fiscal catastrophe will remain fragile. In seek of improving productivity in the countries they should seek to improve their management process and should ensure their sustained growth. As pointed out by Gassmann (2006), the companies should boost up their performance and there capacity to innovate to manage their process. Innovation is also fundamental for addressing a quantity of society’s most extreme issues, such as ambience amends, physical condition and deficiency.

2.3.1 Development of Innovation Strategy:

Process involved in innovation strategy needs to be upgraded on a frequent basis that further increases the application level of the same. Jaffe (2000) described that development in innovation strategy is helpful in ensuring better quality of the productivity line. Innovation strategy in an organisation makes various efforts to have advanced and improved level of production process that guarantees production to a new height. In an organisation, application of project management has to be in a continuous process that can help in development of the strategies depending upon the existing market trends and scenarios.

2.3.2 Types of Innovation Strategy:

Innovation strategies depending on the situation and nature of the organisation is selected that further helps in implementation of the right form. Merrill (2008) defined that innovation strategy are classified in various ways and accordingly the need is recognised as well. However, an organisation need to have detail knowledge about the issues and challenges so that as pr need, innovative strategy can be recognised.

  • Proactive: Companies pursuing proactive strategy may pay attention to novel products and new series in the market place. They may proactively discover new approaches and methods to achieve superior performance. Proactive strategy has a positive impact on performance development and performance diversity (Rothwell, 1994). Companies with proactive strategy tend to have strong research orientation. They will have first mover advantage and be a technology market leader. These companies access knowledge from wide range of source and take high risk. This type of strategy is radical and incremental that changes the nature of product.
  • Active: Active innovation strategy involves defending existing technologies and market but prepared to response positively when the technology and market is proven (Wolfe, 1994). This type of companies has incremental innovation with in-house Research & Development. Companies with active innovation strategy have access to wide range of source with medium to low risk exposure.
  • Reactive: The companies with reactive innovation strategy are followers and have a focus on operation. These companies have a wait and see approach and look for low risk opportunities. The company copy only the proven innovation plans. Companies with reactive strategy use entirely incremental innovators (Bunnell, 2000). Reactive strategy includes only implementation of the innovation plan, which are created, proven and accepted. This type of strategy is said to be secondary implementation.
  • Passive: Companies with passive innovation strategy wait until the consumers demand change in the products (Hobbs, 2009). Many of the companies that supply to automobile industries have passive innovation strategy as they wait for the automobile companies to demand change in the specifications before implementing these changes. Companies with this type of strategy innovate on the basis of demand, need of the consumers.

2.3.3 Integration of Business Strategy:

A successful business is a result of many strategies such as marketing, financial, process, innovative, etc. Integration of all the strategies for a common purpose that is maximization of consumer satisfaction is very important (Lundvall and Others, 1988). Every strategy is interlinked or co related with each other. Integration leads in streamlining the operation and can reduce overhead costs. Different strategies can be integrated to frame an appropriate process saving time and money of the company with full satisfaction of the consumers. Integration can be in many ways, like, vertical integration, backward integration, horizontal integration, forward integration. In all the integration type some strategies are controlled by the company, it and some are outsourced.

2.3.4 Prototyping:

Prototyping is problem solving by moving the ball forward without wasting time. By prototyping, Deeprose (2002) noted that many unknown variables can be filled in and potential problems and solutions appear. Although time can be inconvenient, we must be innovative to continue to be innovative. Prototyping helps to solve problem, which appear one by one over the course of the process. Solving these problems creates a successful new product. Prototyping helps the company to overcome any problem or defect in the innovation process and help in developing successful products. Making sample products as prototype can be more successful than discussing on papers.

2.3.5 Driving Innovation:

Continuous innovation of product is requirement to enable profitable growth. While focusing on product development, continuous innovation is a larger, enhanced, and less restrictive view of continuous improvement (Lock, 2007). Continuous innovation is almost impossible to achieve when goal of the company is only maximising shareholders value. In the words of Michaels (2000), innovation is the trend of the market that has to be implied and adopted in the long run process as and when requirement is observed in the organisation framework. Innovation process in production or project is helpful in increasing the chances of success and assurance of earning larger profits is provided.

2.3.6 Future Implication:

Implemented innovative strategy need to have long-term plan so that instead of providing effect for particular period it can be worth of providing development (Rosenberg, 2010). According to the studied and analysed future of the market, implications of strategies are observed.

Innovation strategy as a process need to be observed at each phase and stage to have detail information about the production process. The process is inter-linked and is observed in synchronised structure that helps in better implementation of the innovation if analysed and observed at each phase. Instead of observing innovation at certain stage, an overall assessment for the concerned process is required.

2.4 Sources of Innovation Strategies:

Innovation strategies as implied within an organisation are framed and adopted according to the current needs of the organisation (Tinnirello, 2000). According to research articles, it has been assumed that product innovations are typically developed by product manufactures. The source of innovation varies greatly. In some field innovation-users, develop most innovation to understand the current market crucially and accordingly shapes the strategy of the innovation process. In others, suppliers of innovation related components are the source of innovation. Still in other field, the product manufactures are the source of innovation. Innovation is need of corporate culture and it occurs in response to a problem or any opportunity that arises either in or outside the organization (Hansen and Birkinshaw, 2007). A variety of case studies, experiment, research methods have attempted to bring out the sources of innovation. Many researchers have pointed out the sources of innovation. The major sources of innovation can be summarised as:

Sources of innovation can be different changes in industry structure, in market structure, in local and global demographics, in the amount of already available scientific knowledge. Another source of innovation, which is widely recognised, is end-user innovation. The end-user develops innovation of their own according to change in their needs. Innovation requires only three things:

  1. A unsatisfied recognised need
  2. Competent people with technology and creative thinking
  3. Financial support

Innovation can be developed through exchange and combination of professional experience and by many other routes (Bunnell, 2000). Innovation in business is mainly as a result of research and development. R&D results in breakthrough innovation. Sources of innovation are of various forms, as cited below:

  • The unexpected: Unexpected occurrence includes mishap, such as product failure. Unexpected occurrences due to current process are observed (Hobbs, 2009). New information leads to new forms of innovation. Unexpected occurrence can be a result of accident. Product like NutraSweet was a result of unexpected innovation.
  • Incongruities: Conflicts between opposing functions, requirement and values may be start of innovation. Incongruities results from difference in companies’ perception or thinking. For example, demand of small cars with still bigger space inside, increase in demand of steel but decreasing return from steel industry, etc caused some innovators to find out innovative ideas.
  • Industry and market structure: Change in industry and market structure and to cop up with the competitive environment; innovators need various innovative process and procedures (Chiesa et al. 1996). The need of industry leads to creative ideas and innovative plans for new business. For example, outsourcing of IT infrastructure maintenance, outsourcing of marketing strategies leads companies like IBM to involve in new and innovative business.
  • Change in perception: Mehta (2007) defined that change in perception leads to innovative ideas. Customer perception regarding the need of the product changes and along with that new product is in demand having innovative features. Customer’s perception in respect to health has changed which require innovative products to control health. Thus, change in perception opens the door to innovation.
  • New knowledge: Company should look forward to new knowledge for ways it can improve incrementally. Knowledge has leaded many new opportunities for new products (Gulati et al. 2000). When a new technology emerges, innovative companies can profit by exploiting it in new application and market. Knowledge motivates the innovators to think on other side of customer need. This leads invention of new and innovative product having competitive advantage.

2.5 Innovation Life Cycle:

The particular model of lifecycle suggests that the general market adoption a bell curve that tracks to customer or consumer adoption of the new technology and product or the service. In the beginning came the early adopters who were generally interested in testing the new things and then trying them out in practical way of managing the plan (Gulati et al. 2000). The technology then took a turn and then moved from the custom solutions for some of the specific segments to mass manufacturing and then the distribution of the standardized products for the market with the products in mass quantity. Hence, from this point of the time, the market matured and the late adopters came into the limelight. Then the late adopters who worked on the adverse of the risk were purchasing the tired and the true solutions. Moreover, Rosenberg (2010) commented that the competitiveness became almost entirely based upon the incremental improvements and the economies of the scale.

The simplest example of these particular dynamics usually comes from the “typewriter industry”. The actual beginning for boost up was the arrival of the manual typewriter. After this invention was implied by the IBM Selectric from the outside sector of the industry, that invention displaced the manual technology and hence after that moment created a new industry of the new electric typewriter. After that moment the word processor followed, that derived IBM’s business into an obsolescence. After that the next and the obvious invention that took place is the invention of the computer, Microsoft’s Word and the desktop printing, which represents the latest S-curve. This invention in itself invented a question that what will be the next invention in the world.

The one and after breakthrough innovations that represents the bold new S-curves has rarely created and is driven by the industry productivity. As to state an example of ten leaders who are there in a semiconductor industry in the year of 1995, and only two of the ten were left in the year of 1975- General Electric and RCA and if there were 85 US television manufacturers and now that is today there is one – Zenith. Just as to avoid the obsolescence a company is in great need of understanding that where the company lies regarding the business, products, services and the technologies that where they fall in the lifecycle and in the end to leverage them to the strategic management.

2.6 Chain-Linked Innovation model:

Innovation in itself can be defined as all the scientific, technological, organizational, financial and the commercial activities necessary to create, implement, and market new or improved products or in the process (Al-Harbi, 2001). For the preparation of our assignment, we have aimed on the firm level of innovation in management planning process and then concentrate on the scientific and the technological activities for a firm support in the performance of innovation. For doing this, the researcher has used a well-known model of innovation, which is the chain-linked innovation model. Hansen and Birkinshaw (2007) pointed that the technical activities occurring in the innovation process, which is the external force of the market place along with the complex interaction that lies in between the various stages of the process of the management plan.

Figure 1: Chain-Linked Model

(Source: Figg, J. 2000, pp. 15)

Ambiguity is a key solution of the model: in actual, innovation can be described as an implement in the administration and reduction in vagueness (Mehta, 2007). It relates to two aspects: the technological recital of the modernism, but also the marketplace answer to its prologue. The model identifies five major paths of innovation processes: the central chain of innovation starts with the invention/production of a design, based on market signals, that is then developed, produced and marketed. The process includes opinion loops iterating the steps and controlling for perceived market signals and users’ needs, and linkages flanked by science and innovation, representing the recourse to various knowledge stocks associated the intact process. The two linkages symbolize the rare case where new skill makes possible a far-reaching innovation, and finally the response from innovation grades back to the art.

In the representation, “market-pull” and “machinery thrust” aspects of modernization are mutually dependent. Apparent demand can be met only if the suitable knowledge and technology are obtainable, and an innovation will be realized only if there is a market for it. An important aspect that is not explicitly addressed by the model is the perfectly of returns from innovation, related to the nature of in sequence. The result of innovation is not only a new product or process but also the establishment of new information, which has communal benefits features. The use of it by more than one person does not require additional resources and does not exclude the use of it by another person Deeprose, 2002). These two properties of information make the gains from innovation uncertain and difficult to appropriate, which implies that R&D opportunities that would be socially profitable are not exploited because they are privately unprofitable. Such a market failure is said to exist when private incentives provided by market mechanisms lead to a different resource allocation and a different product mix than the socially optimal outcome Gassmann, 2006). In order for innovation to be undertaken, incentives need to be provided.


2.7 Radical Innovation:

On the basis of standard innovation process model, a large number of organizational as well as economical reasons have been presented the explanation of the fact that why the new comer companies are generally more passionate towards incremental innovation than towards radical innovation. The form of radical innovations wants to innovate the rules of markets and competition by exigent well-known technology, products, practices and knowledge and therefore by their very nature wants to be troublesome for the newcomer companies and organizations. Radical innovations intentions few demanding consumers with low cost models, eloquent that established players cannot cut costs to compete with the new comer companies and organizations (Merrill, 2008). It is experienced that incumbents unintentionally produce opportunities for the new comer companies and organizations to innovate a new models of business at a very low expenses and enhanced product qualities, at the same time as constantly failing to maintain their grip in handling discontinuity of market during times of radical innovation IBM, for example, unsuccessful to recognise the emergence of mini computers. While, there are enough instance of incumbent business companies and organizations that have been elastic enough to become accustomed their selves and have not only survived discontinuity of market due to radical innovation but have made known continued development in performance. Their consumer base remains   not affected by the winds of innovation.


2.7.1 Impact of Radical Innovation:

On the contrary hand, Rosenberg (2010) pointed that the models of incremental innovation that intends to improve breathing product services and lines. While the models of the radical innovation want to turn into existing services and products non-competitive and often imply transformation that destroy the competences of that survive in an established business organisation and companies. The process of radical innovation is totally new set of performance description within the business organisation and companies and lead to significant cost effectiveness (Hobbs, 2009).

The model of Radical innovations by their very troublesome nature opens up new opportunities or technological possibilities in the marketing environment (Lock, 2007). While at the same point of time the radical innovation also affecting demands for existing line of the products. Radical innovations take in hand the respective markets in three distinct ways: by aiming underserved/not served purchaser group, thereby creating a new segment of purchaser or by attracting consumers who have no require for the quality rich and high priced serving product and finally by adopting a cost effective model of business organization and companies, for this reason a price of the products become very low.

Radical innovations restricted by the consumers of mainstream because this model of innovation introduces new attributes of product, which these customers do not matter (Deeprose, 2002). They not have the quality and performance of products and services in key considerations, for instance Sony provided small size and portability but forfeited sound fidelity in its earlier models of radio. At the same time as the model of radical innovations possibly will or will not have linkages to current technologies, it fetch the indecision for both current as well as new comer companies as they gives a number of possible substitution of candidates, it is therefore difficult to forecast with confidence the timing and commercial assurances of any model of innovation.

The model of radical innovations in any business organizations cover new segments or the underserved customers, they spotlight on solving unnoticed consumer issues and problems (Rosenberg, 2010). In the case of incumbents, a strong customer aims becomes an slow down reason for adhering innovation particularly if their prime consumers experience that the concept of product or business model does not interconnect with their strategies and needs. In doing so incumbents create a “complacency and competency trap” for themselves, which slow down their abilities and results in business organisational inactivity.

Amusingly on the other side, a strong consumer aim come outs as a strength for new comers as it allows them to focus different segments of consumers and their requirements disregarded by the incumbents. For example, The Conner Peripherals Company determined of selling its 3.5- inch drives to Compaq in emerging markets of portable computers and desktops, at the same time as the Seagate the leading incumbent mainly concentrating on the feedbacks from IBM who felt no requirement for drives of 3.5 inch for its mainframes because they had limited capacity for storage. By the end 80’s the market of mini computers boomed and at that point of time Seagate realised the market potential that it was too late for drives of 3.5 inch. These discontinuities of innovation create improbability, it is not easy for business organisations to determine whether the innovation affects its technological competencies or does it also change the models of existing business and strategic viewpoint. In the case of Polaroid, while it maintained the technological innovations well it unsuccessful to become accustomed to the radical alters required in its business model and strategic viewpoint about the current market environment.

Radical innovations may also be originated through the mutual transfer of active new competencies and resources between different units within the business organization and companies (Heerkens, 2002). For instance, the competencies of mutual moves between strategic division, unit, corporate venture and subsidiaries of different business organizations. That means new competencies and resources, which previously exist in few divisions of the companies and business organization. In the case of a corporate venture, Bunnell (2000) defined that can be moved to other corporate ventures or newly added corporate ventures or different business divisions and units of the core organizations.

In any business organization, the model of radical innovation management the elements of success progress and mutual transfer of new competencies are of dominant significance, even if the elements of success amalgamation capacity and resource adaptation also perform a significant secondary role. The management of the radical innovation from the viewpoint of the CBV or RBV also has to take into concern that competencies tend to have an uncertain effect on the innovation capacity of the business organizations. Core competencies put into effect on the one side an effect of promoting innovation and on the other side an effect of inhibiting innovation (Deeprose, 2002).


2.8 Innovation Value chain:

The stage of innovation is off the record in various ways by different authors. Merrill (2008) offered five stages to it. The five stages are as follows knowledge, persuasion, decision, implementation and confirmation. Lock (2007) suggested ten stages including idea conception, awareness, matching, appraisal, persuasion, adoption decision, implementation, confirmation, reutilization, and infusion. Gassmann (2006) projected a six-phase warren of innovation, where the gush of flourishing innovation comprises need, creation, invention, innovation, diffusion, and adoption. On the other side, Bunnell (2000) presented that innovation as a chronological, three-phase process that involves idea generation, idea development, and the diffusion of developed concepts that includes six critical tasks namely, internal sourcing, cross-unit sourcing, external sourcing, selection, development, and companywide spread of the idea. In their classification, the whole process is stated as the IVC. The first segment is to engender ideas regarding what can ensue inside a unit, across units in a company, or outside the firm; the second segment is about how to convert or select ideas for funding and developing them into products or practices; and the third segment is how to diffuse those products and practices. Similarly, Hansen and Birkinshaw (2007) pointed that model IVC as a repeated procedure that has three main associates such as ‘knowledge sourcing’ to assemble knowledge necessary for innovation, ‘knowledge transformation’ to translate knowledge into physical innovation, and in the end ‘knowledge exploitation’ to improve the endeavour act. The IVC offers a customized and methodical come within reach of to assessing firm-level innovation presentation (Chiesa et al. 1996). It is probable to be relevant to the foundation of the IVC framework and investigate the innovation procedure at the assignment level as well as the firm level (Mehta, 2007).













Creation within a unit

Collaboration across units

Collaboration with parties outside the firm

Screening and initial funding

Movement from idea to first result

Dissemination across the organisation

Key questions

Do people in our unit create good ideas on their own?

Do we create good ideas by working across the company?

Do we source enough good ideas from outside the firm?

Are we good at screening and funding new ideas?

Are we good at turning ideas into viable products, businesses, and best practices?

Are we good at diffusing developed ideas across the company?

Table 1: Innovation Value Chain (IVC), Firm Level

(Source: Hansen, M.T. and Birkinshaw, 2007, pp. 130)

The above-illustrated table describes the IVC model with reference to a firm that helps in gaining efficiency over the organisational activities. Innovation within an organisation need to focus on synchronisation so that success of strategies can be achieved with effectiveness.


2.9 Innovation Framework:

The different stages of innovation are described as ideas, adaptation, and diffusion based on IVC (Rosenberg, 2010). In this assignment, this is based on the level of innovation capacity in the management process, ideas that are generated through the acquisition of necessary skills and investments; these are converted into product/ process/ service innovations within the organisation. These innovations are conquered to achieve performance benefits and its collisions. A modernism occurrence, in the figure of a new creation or progression, represents the end of a succession of acquaintance sourcing and conversion activities and the beginning of a process of value creation, which may perhaps result in an improvement in the performance of the innovating business (Tinnirello, 2000).

Figure 2: Analysis of Innovation: Construction Industry

(Source: Gassmann, 2006, pp. 228)


The organisations occupy a number of apparatus, techniques and strategies all the way through the entire progression and peripheral factors such as drivers, barriers and enablers determine the effectiveness of creation and dissemination of improvement. In this deference, it can be stated that Hobbs (2009) manufacture at the nationalized rank is adapted for the manufacture industry to analyse firm level innovation process. The general innovation presentation can be determined by the accomplishment of the IVC jointly with the benefits and impacts achieved through the innovations in the process of management (Fuchs et al. 2000).


2.10 Innovation Management tools: Project Management

Innovation management is the process of capturing and managing organizational innovation. The year-to-year viability of a company depends upon its ability to innovate (Gassmann, 2006). To manage the company through innovation, it need a structures and informed analysis. Each innovation has different aspects, some referring to its value proposition, some to future users, some to probable responses from its competition and so forth. According to Lock (2007), to manage the process of innovation, companies require innovation management tools. Innovation tools accelerate innovation processes. The tools help companies to map up the innovative network.  


2.10.1 General Innovation Tools:

Benchmarking: Benchmarking can be used to compare how different companies manage the product development processes. The approach has been widely used in quality management where it is used to drive improvements in business performance (Hansen and Birkinshaw, 2007). Benchmarking provides powerful motivator since comparison often highlights gaps. It provide structured way of looking at new concepts and ideas.

Brainstorming: As innovation takes centre stage in business arena, companies want their people to think creatively. Creative thinking is no longer an attribute, but a critical competency for the organization (Merrill, 2008). To help their people think creatively, they are introducing tools, techniques and processes designed to generate unique outcomes. Brainstorming is a tool coming back in the market.

Business process reengineering: BPR as an innovative tool focuses on the analysis and design of workflow and processes within an organization. BPR aims to help organization to rethink how to do their work in order to dramatically improve customer service and cut operational cost (Patel, 2008). BPR helps the company to restructure the process and develop new products.

Change management: Companies progress in are the hands of management. For innovative ideas, as analysed by Tinnirello (2000) the management is core responsible. Innovation can be effected by changing the management and changing management process.

Technology audit: Companies with innovative approach depends mostly on new and developed technology available. The need of technology audit is now a day most important method to figure out appropriate innovative tools for the company. Technology audit figure outs the advantages and disadvantages of using available technology and need of development for better outcome.

Technology forecast: Technology forecast deals with the characteristics of technology, such as level of technical performance. It usually deals with useful machines, procedure and techniques. Common method of technology forecast includes Delphi method, forecast by analogy, growth curve etc.


2.10.2 Managerial Innovation Tools:

Managerial innovation tools are new organizational structures, administrative system, management practices, processes and techniques that could create value to the organization (Mehta, 2007). Some of the managerial innovation tools are:

  • Total quality management (TQM)
  • Just in time production
  • Quality circle
  • Cost accounting
  • 360 degree feedback
  • Divisional structure

Peer evaluation: Peer review is evaluation of the work by different experts of similar competence. Different experts for the efficiency, effectiveness of the innovation process, can evaluate the process of innovation. The different innovative plans and method is peer reviewed for selection of the best possible method (Deeprose, 2002).

Team building: There’s no deny that team forms the foundation of today’s corporate structure. Good team dynamics and good team relationship between the members of the team ensure better workplace, productivity and performance (Heerkens, 2002). The idea is to foster teams that are divergent in experience and skills, yet complimentary in functioning. Organizations are making efforts to invest time and resources in building better and high performing teams.

ISO 9000: ISO 9000 is most applied quality management model in the world. Quality and innovation are recognised significant business issues in all kind of organization. Quality professionals are not aware of the innovation phenomena neither innovation experts are familiar with quality procedures (Rosenberg, 2010). There are various cross references between these disciplines. Organizations compete with the quality of their product. In order to be successful, organizations must be responsive to changing market situations and provide outstanding and excellent products through their efficient business processes. Innovation has been in professional quality practices already decades. In fact, there is no real improvement without innovation.

Total productive maintenance: One of the main objectives of total productive maintenance is to increase the productivity of plant and equipment with a modest investment in maintenance. TPM is regarded as key operational activity in quality management.


2.10.3 Product Innovation Tools:

Design for X: Under Design for X, a wide collection of specific design guidelines is summarized. Each design guideline addresses a particular issue that affects the characteristics of a product (Gulati et al. 2000). The guidelines propose an approach and corresponding methods that may help to generate technical knowledge in order to control, improve, or even to invent particular characteristics of a product (Bunnell, 2000). The guidelines summarized make a profitable process of manufacturing that enables the company to develop fruitful product and generate return. Design for X provides the overall guidelines like design of manufacturing, design for production, designs for assembly, and designs for recycling. By building linkage between design processes and products desired output, innovators provide an explicit roadmap for DFX implementation throughout the organization. DFX consists of behaviour standards, working processes and supporting tools, which result in much better and matured products.

Quality function development (QFD): It is a method to transform user demand into design quality. It is a method to deploy the functions and methods for achieving the design quality into specific elements of manufacturing process. QFD is designed to help innovators to focus on characteristics of a new or existing product from the viewpoints of company, or technology development needs. QFD helps to transform customer needs into engineering characteristics for a product. QFD is applied in a wide variety of consumer products and emerging technology products (Mehta, 2007). The technique is also included in the new ISO 9000:2000 standard, which focuses on customer satisfaction.


2.10.4 Process Innovation Tools:

Process innovation is the implementation of new and significantly improved production method. This includes significant change in equipment, technique and software. The implementation of a new or significantly improved production method involves the development of a new way to produce a product using a newly developed machine (Al-Harbi, 2001). Product innovation can occur when the production system is outsourced. Employee suggestion program can be a key component of process innovation.

The process begins with strategic product planning. In some cases, it involves working with employees toward internal process innovation, working as a team to clarify the company's brand strategy and then assess opportunities for innovation.

Lean thinking: Lean is a process of eliminating the waste with the goal of creating value. Lean manufacturing is a production practise that considers the expenditure of resources for any goal other than the creation of value for the customer to be wasteful, and thus reduced. Lean manufacturing include identifying the define values which the consumers need from the product (Davenport, 1993). The company should figure out the customer need and accordingly frame the manufacturing process. After identifying the customer value, the company should look at the existing process and eliminate the waste.

Concurrent engineering: Concurrent engineering is a work methodology of performing tasks concurrently (Rosenberg, 2010). It refers to an approach used in product development in which functions of design engineering, manufacturing engineering and other functions are integrated to reduce the elapsed time required to bring a new product to the market. This type of strategy focuses on the distribution of companies’ resources in the design and development process to ensure effective and efficient product development process.



2.11 Productivity and Innovation:

Productivity is one of the crucial aspects of an organisational process that involves conversion of raw materials into finished form so that the consumers can consume it. However, the process of production is involved with various strategies that further helps in selection of the most useful strategy. Hobbs (2009) defined that productivity is the ultimate source of achieving organisational goals and improvements in production level is continuously analysed to adopt any scope of positive alternations. Productivity within organisation supports the concept of availability of products to the consumers. Processes with alterations are adopted to have better customisation of the consumers along with improving the process of production that can bring positive change in the production process.

Innovation within organisation on production level is comprised of various strategies that also initiate production system to new heights. In the words of Atkinson (1999), innovation strategies aim to enhance the process of production with new and improved techniques. Application of innovation strategy seeks allocation of resources so that maximum volume of production can be gained. Productivity of an organisation tries to be underpinned by the most appropriate strategies so that it can be considered and applied to maintain in the market with effectiveness. However, Gulati et al. (2000) pointe

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