Innovation and Entrepreneurship
Discuss about the Innovation and Entrepreneurship for NineSigma Strategic.
Entrepreneurship is defined as the process of setting up the business organization and taking on financial risk amongst other risks with the hope of getting and increasing profits. Many business organizations have gained their success by incorporating relevant entrepreneurship trains. Innovation is prime factor that drives the success of business enterprises; it is an independent component that brings the essence of entrepreneurship to its relevancy in the market. According to Peter Drucker, (2015), the essence of innovation and Entrepreneurship is reflected by the creation of new products and services by entrepreneurs. It also boarded by systematic innovation that purposefully intends to provide solution certain business challenges (Drucker, 2015).
Business innovations are the vital research development that continually needs to be implemented by the business organization in order generate a new platform for reaching the set strategic goals and objectives. They are also one of the primary matters that business organizations in the current business environment are using to create clear pathways that create speak able public values on products and the marketplaces that contributes towards the organizational success. Organizational management has a big role that they need to play in order to enhance the better development of their respective organization with respect to the general success of attaining business strategic goals and objectives (Ang & Goh, 2018).
NineSigma is a service provider model that has amalgamated with over 1,000 universal solution provider globally with the key purpose of enhancing their innovation regarding their products quality and services as they make a new one and distributed them to be known in the market (Antikainen, 2015). Business enterprises in relation to entrepreneurial aspect have defined the internal mechanism of improving their products and service and solutions to problems that might affect their general process (Argote, et al., 2018).
In order to enhance substantive innovation practices, the organization has to partner with other services providers in the business environment. The global services provider has access to more than 140 countries whose offices are found in countries comprising: Australia, USA, Europe, Japan, Korea and Canada. These countries provide excellent innovation services to business and thus making their business organization in different industries to be more competitive. The goal is to create a pathway where small, medium and large business can tap a wider scoop science and technological experience that can be added to their existing technologies during product sale processes (Argote, et al., 2018).
NineSigma Service Provider Model
NineSigma service model offers essential business solutions relating business, marketing, business process, biomedical and biotechnology. NineSigma works with other service providers in electrical, chemical engineering, green technology, food technology materials, mechanical and industrial engineering (Barley, 2017). Amongst the products and service provided NineSigma comprises; to build intercompany collaboration with other companies from across all industries. Apparently, the intent to transform other company’s innovative processes through access to Nine Sigma’s system architecture (Berman & Dalzell-Payne, 2018).
The nature of the service provided NineSigma has made it to more competitive in the innovation and services provision industry. The main target market for the company is the SMEs in Australia, USA, UK, Japan, Korea and Canada (Barley, 2017).
In order to retain the products competence in the market, an overhaul of the production processes is put into action because customers need the value of the products to be worth what they are paying. NineSigma, therefore, works together with some organizations known as Innovation Accelerators (Baumol, 2012). These organizations assist in helping with the innovative solutions to make them worth it in the market. Subsequently, NineSigma puts into account the existing and the new technology methods so as to ensure the success of the innovations is guaranteed. It can be said that the value of these Innovation Accelerator organizations by the year 2015 was put at 5.5 billion Euros as many businesses find it easier and better to work with these particular organizations (Berman & Dalzell-Payne, 2018).
It has become a norm for businesses to seek assistance from well-placed innovation partners. The innovation partners such as NineSigma, which is one of the largest organizations have been able to gear up into explorative and exploitative methods which will provide the customer with what they need and deliver on the same. The increasing competition in businesses, therefore, makes it important for business organizations to consult these innovation organizations in order to reach their maximum potential in the marketplace (Bridge & Dodds,, 2018).
This then puts open innovation in the limelight as with it, business organizations are able to be on the top gear in undertaking their business mandates as well as outdo their competitors in the same field (Wareham., 2010). NineSigma has so far been able to complete more than 2500 innovation projects with different business models in different countries. Additionally, they have been able to get in touch with over 2 million innovation solution providers in the latter field to enhance their business potentials and reach a wider market (Salter.., 2010).
Products and Services
The organization has also been able to receive 37,000 proposals from some 116 countries and different governments, individual clients from different levels of businesses such as multinational level, middle market level, and some nonprofit organizations. This clearly shows that the organization has gained foot internationally and that it focuses and delivers according to the client needs (Provedel, 2017).
It is evident that NineSigma has a very much vast experience in this field which puts them in a position to be able to provide their business partners with remarkable and recommendable innovation solutions that will and shall deliver depending on the business needs and the marketplace conditions while focusing on customer satisfaction. The engagement of NineSigma with the other business partners use a method where they identify the best personnel and the most working technology and put them into action so as to add value to a certain aspect of the business ( Loretto & Phillipson, 2018).
Because it’s a mandate of a business organization to put in place measures which ensure that the value of their products is improving from time to time, engaging experienced partners to work on the product improvement phase is the best solution as it minimizes and avoids risks which would have otherwise eat into the business organizations’ account. NineSigma’s operation includes the use of a Request for Proposal (Chesbrough, 2006). This is a clear, concise and compelling document that clearly describes the business need and it is generally used to communicate or pass the information to the service provider and proposes the commencement of the project stating the measures put into place, for example, the investments accrued upon, the timeframes and the evaluation criteria to be used.
Also known as networked or external innovation, Open Innovation is the process of outsourcing new ideas, concepts, technologies and talents and generally focuses on uncovering new ideas, reducing risks in undertaking commercial actions, increasing development speed and leveraging scarce resources for maximum development. With a better understanding of what a specific company can achieve the available resources while being able to lower the risks by combining external capabilities with internal innovation and available resources (Gil-Garcia., n.d.).
NineSigma uses open innovation as a dominant type of innovation in its business model. As open innovation can come from nowhere, being the first one to invent it can neither be necessary nor be sufficient for a particular commercial success. NineSigma essentially acts as a facilitator or matchmaker between corporate clients who need a particular product or technology or expertise and the global technology marketplace. NineSigma offers end-to-end solutions that can expand a particular organization's internal capabilities and potentially increase measurable results from a customer’s innovation program (Gil-Garcia., n.d.).
NineSigma has participated in more than 1,300 projects and completed project of the same tally. The projects come from different global solution providers and different industries and technical disciplines. By creating sustainable Open Innovation programs, NineSigma outsources innovative ideas, technologies, products, and services and connect them with the best innovators from around the world who will make the ideas become a reality. The innovation system in use here is additionally promoted by a parallel trend in innovation processes. The processes of probing and learning about a specific innovation add support to the previously developed interaction between suppliers, customers and the research and development partners who make the innovation a reality. The integration of the suppliers into the process significantly increases innovation performance in most commercial undertakings.
Open Innovation has been around for some time, there is evidence that new business models and business people are being seen in this particular field. This shows that open innovation is being widely available and publicly adopted even though there are some minimal challenges facing it, but that won’t hinder the growth of the open innovation business models. This type innovation recognizes that outsourced knowledge can be used to counter competition from other commercial players and makes it evident that sharing of unused ideas and tapping into external knowledge sources easily outweighs the threat of potential competition.
To guarantee the success of any innovation, an organization solely depends on the accuracy of the innovation being put in place. As organizations would quite wish to retain the cost of these innovations by applying the cheapest and effective method, NineSigma gives business models new technology with innovation by using a comparison method of different achievable solutions. Open innovations clearly put market standings of a business on a top notch as it focuses on the abilities achieved by competition. This works even in the difficult economic conditions as the organization is solely answerable to the innovation settings (Curwen, 2017).
Generally, traditional methods of innovations are usually expensive for the business organizations to work on, NineSigma has therefore been on the frontline to eliminate this and help the organization reduce costs of innovation and improve their services and products. Open Innovations have distinctively replaced the traditional innovation methods as they have become monotonous in the business field.
How does this organization organize and manage the implementations of evaluations?
NineSigma manages it plan in a determinable manner where it strategizes on its intellectual property. It basically requested for a proposal; (RFP) that was intended to provide solution to non-confidential platform for exchanging relevant information between the specified service providers. This strategy was to simplify how business organization together with other services providers can exchange information that are considered to be substantial in decision-making process. The open innovation team act to review on the internal structures that are relevant to keep the organization updated on the some emerging issues in the business environment.
The enterprise has been long operating with different internal structures that are updating the market demand on the processed products and services, especially in food packaging. It utilizes the technological frameworks that are substantial in manufacturing platforms. NineSigma has been the backbone for the success in this corporation since it facilitated in co-development of the company facilitating the company with knowledge about new technology for products of services and goods (Amann, et al., 2017).
The corporation had already established almost 10 existing challenges relating to production of services and food, regarding food packaging. NineSigma as a global network provider for wide of business solution gave the Sealed Air Corporation ideas that could be used to increase and improve it sustainability in business environment. Cost of production was considered to be a regular solution that NineSigma encouraged the corporation to reduces, the use of technology normally reduces the cost of production in an organization and thus it’s more encouraged to be used.
How do these initiatives facilitate the achievement of strategic innovation outcomes?
Many business organizations in the modern business environment accept the impact created by the open innovations. Open innovations strategies allow business enterprises to develop and come up with new business models as well as theories that will help in providing substantial business solution, open innovation in business are obtained by utilizing the available opportunities alongside with the traditional corporate strategies employed before their initiations. In improving the profitability making of a business organization, open innovation provides check-point where they reduce the risk that are associated with new technological implementation, with regard to productions of goods and services (Carayannis, 2014).
However, the global services provider to business organization have exemplify better turn-point for many business enterprises in provision of relevant business solution of improving the existing products and services in the market, thus facilitate organization in gaining business economic stand (Gassmann.H, 2013). The aspect of gaining knowledge about the existing products and services tend to allow business enterprises to be more competitive as compared to other business market players.
According to Chesbrough, (2006), open innovation is boarding substantive knowledge that facilitate long term solution to upcoming business issues in many business industries. Open innovation is a fundamental factor that accelerate organization desire to utilize the positive generate ideas in order to improve their business activities as they remain sustainable on the particular diluted market industries (Calantone, 2018).
Apparently, knowledge is provided by open innovation by defining the vital business solution as well as communicating the same solution to the relevant organizational structure as their response are considered important in decision-making process. More of knowledge and ideas are generated to business organization by engaging in many solutions that encouraged business organization in moving towards achieving its strategic goals and objectives (Calantone, 2018).
Businesses which participate in open innovation solutions usually receive more opportunities and have wider connections in the market place in different ways. By using open innovations, businesses can make various innovations and put them into test without worrying about their capital effects and costs incurred alongside the operation. Global communities of solution providers generate new innovations which tend to create new and better market opportunities as the new innovations usually go through giving solutions to the existing challenges (Baumol, 2012).
Interestingly, one request for proposal send to NineSigma might end up leading to a series of different new responses from the global communities of solution providers. This provides solutions to different and similar problems being faced by other businesses (Abuelnuor, 2018). Therefore, a proposal usually ends up generating more new ideas and other discoveries that can be applied to different problems and different businesses in various markets. This creates new business opportunities to both parties in the business sector.
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