Discuss about the Innovation for Lack of Growth.
The essay consists of comparison between the innovation of small medium enterprises and big enterprises of New Zealand. Innovation is the latest concept that is the modern trend of expanding business in different areas of New Zealand. The small medium enterprises chosen for the essay are Cookie Time and Ernest Adams. These companies come under the food and beverage industry of the country. On the contrary, the large enterprises chosen for describing the innovation process are Countdown and New World. These two companies are the renowned supermarket retail chains of New Zealand.
However, it can be said that since, the essay is an argumentative essay, hence different ideas of innovation will be described on the perspective of the authors of the peer reviewed journals. The essay will focus on the various topics of innovation such as imperative of innovation, innovation as a management, measurement of innovation, dimensions of innovation space, innovation strategies used by new ventures and large ventures, etc. The comparison of the innovation used by small ventures is more innovative or not will be described in the essay. It can be also vice versa in the form of arguments.
Innovation in any industry is considered as shaping the future in the industry to meet the competitive demands of the market. Innovation will consider few aspects in the market such as changing patterns of consumer behaviour, lack of growth, price war among the brands, etc. In order to provide a competitive edge to the rival brands, the competitors of the same industry are responsible for providing quality products in order to seek the attention of the target customers. Innovation includes new technologies that consist of 3D technologies, smart shopping tools, wearable technologies, innovative taste in foods, etc (Haynes & Grugulis, 2013).
The four companies selected in the essay are somehow using innovation for the different types of operational process of their business. The definition of innovation reflects the fact that it is the existence of the foundation and growth of new businesses. It is also a key driver to the growth and development of the companies in the economic perspective. The practice of innovation is responsible for addressing the pressing global and social challenges that includes climate change, demographic shifts and resource scarcity. The innovation usage of the small medium enterprises and big companies are different from one another. They use it on another scale for getting a better result (Waterlander et al., 2015).
Dimensions of Innovation Space
The innovation imperative of the small medium enterprises of New Zealand is less than that of the big companies. The companies like Ernest Adams and Cookie Time are not so popular in the New Zealand market. They are constantly surviving in the market by using innovation process in the new product development. It can be said that the higher rate of failure of the development of new food products in the industry is the reason of the failure of the development of the products in the market. On the contrary, it can be said that the big enterprises like Countdown and New World are likely to use more innovative technologies in order to satisfy the needs of the consumers of the country (Basker, 2015). The success and the failure of the innovation imperative of the companies are based on some features such as consumer/market knowledge, senior management involvement, information of the customers, retailers and suppliers, unique products of superior quality, etc. The success of the innovation depends on the retailer communication, inspiration from food technologists’ retail supplier, innovation developed by company, technical development from food technologist that is the reason of the development of innovation. With the effective aspect of development of new product development, the success of the company depends (Djellal & Gallouj, 2016).
The dimensions of innovation space are defined into four categories such as product, process, position and paradigm. The dimension of 4Ps of innovation space will help the companies while understanding the innovation and its better influences. Product innovation refers to change of things in the company in the process of innovation. Process innovation refers to the change in the organization process of the company (Norman & Verganti, 2014). Position innovation refers to the understanding of the changes that is required for the innovation of new products and services. Paradigm innovation is the last P of the dimensions of the innovation space that is related with the different aspects of the mental models of the framework. The dimensions of the innovation space are related with the radical aspect (something new) and incremental aspect (doing better) (Kell et al., 2013).
The innovation strategies of every firm are different from one another. Though it is a wrong notion, that innovation means reinventing the shape of the wheel. Innovation also means that the company is using any technology or change the pattern of doing its business in its area of business operations while generating more profit from the market. The aim is to add more customer value while earning more profit from them. However, it can be said that the companies that are new in the market they tend to implement different approach towards innovation. On the contrary, it can be said that the companies that have gained experiences and knowledge regarding the innovation trends and market changes are found to use a different approach (Mylan et al., 2015). The approach depends in various internal factors such as inter organizational competencies, financial resources, knowledge of employees regarding the firm’s business, etc. The various types of inter-organizational ties that influences the approaches of the organizations irrespective of their sizes are joint ventures, corporate ventures investment, non equity alliances, spin offs, spin ins, etc. The aspect of open innovation depends a lot on the perspectives of the ability of both small and medium enterprises’ and big companies’ networking abilities and inter organizational relations (De Kervenoael, Elms & Hallsworth, 2014).
Innovation Strategies of new Ventures and Existing Ventures
Management of innovation has been always a point of concern of every company irrespective of sectors. Innovation depends on many factors. The firms who followed open innovation is defined as the partnerships with other companies that will help in building a positive relationships. It is also related with innovation with other companies. The supermarkets of New Zealand use open innovation in order to absorb or develop new technologies that will help in commercializing the new products by initialising the needs of the consumer demands in the market (Kurnia, Karnali & Rahim, 2015). The strategic management department of the organizations along with the research and development department while utilizing the technological dearth of the new product development strategies as well as to mitigate the price wars.
Usually the small medium enterprises of the country find issues in managing innovation in the fields of supplier management and distribution of the products in the various regions of the country. Though, Ernest Adams and Cookie Time uses technologies of ICT but they find problems in terms of networking with distributors, suppliers and sometimes customers also. Apart from that, it can be said that the inter organizational networks in these companies are strong in terms of meeting the organizational goals (Pantano, 2014).
Innovation concept in companies can be utilized in different types such as closed innovation and open innovation, etc. Firms in New Zealand face many competitors while converging them in industries and they are responsible for the development of the operations in the business development. The adaptability of the company is related to the adaptability of the power of innovation. The innovation strategy of the company is influenced by many factors such as resources of the company and the nature of the organization. It can be said that the resources of the company is responsible for the innovation failure of the company in terms of lack of knowledge (Lewrick et al., 2015).
The innovation strategy of the small medium enterprise of the company consists of two aspects such as technology driven input side of convergence and market driven output side convergence. The convergence of markets includes knowledge about new market area, demand structures converge, substitution of products from other industries, etc. The fusion of existing technologies that is owned by the company is an issue of the different levels of innovation implication in the business operations. However, the big companies focus more on research in order to find the areas where it can implement new technologies of innovation of their products and services (Lange & Velamuri, 2014).
Innovation as Management Process
The knowledge of innovation is depended more on the nature and the employees of the company itself. The challenges of the global market in terms of supermarket are very challenging. The knowledge of innovation is mainly depended on the level of expertise that companies leverage in order to utilize the skills and expertise of the employees associated with it. The companies are responsible for the execution of the calculation of the supply and demand in the market. The employees of the companies especially the big companies are responsible for the different types of research related to the consumer needs and market needs. Many types of innovation are discovering day by day (Martin et al., 2015). In this competitive environment, the aspect of sustainability and environment is important for detecting the buying behaviour of the shoppers. The market communication is related to the different types of consumer needs, product concept, and image of the product. In this perspective, the knowledge about the actual field of innovation is high. The small medium enterprises in this perspective are not doing any type of proper research regarding the changing taste of the consumers in the New Zealand. Hence, the innovative technologies are not in action properly (Oyake-Ombis, van Vliet & Mol, 2015).
As it is discussed, earlier that innovation is categorized into two aspects such as open innovation and closed innovation. Open innovation is characterised as the implementation of innovation where the companies are responsible for implementation of the changes according to the market needs and consumer demands. On the other hand, closed innovation is consisted of the rigidness of the company in terms of the change implementation (Tsolakis, 2015).
The innovation level in a company is measured in two perspectives. The first perspective is the requirement of the innovation in the firm in its different levels of business operations. Another perspective is the level of effectiveness of the innovation in terms of functionalities after they are implemented at the core levels of business operations. Innovation can be implemented both in terms of product and service development. The products of the companies as well as the service of the product-based companies are equally important to the customers. Customer demand from the company is a vital factor that can measure the requirement of the need of new process or approaches implementation in the services (Saskia, Mareï & Blanquart, 2016).
It can be concluded that the two supermarkets of New Zealand chosen in the essay i.e. Countdown and New World are found to be more innovative than the small medium enterprises Cookie Time and Ernest Adams. It can be said that the innovation imperative, innovation space of the supermarkets are more than that of the small medium enterprises. Though the food product manufacturing companies have more dominance in the market than the supermarkets, hence they haven’t utilized the required forms of innovation that is essential for their business growth. The food products sold by the multinational fast food giants as Subway, Domino’s, Cookie Jar, Mc Donald’s, etc. are more popular than the products sold by these companies. Lack of innovation results in the lack of market share, lesser brand recognition, lesser profitability and lower sustainability in terms of competitiveness. On the contrary, it can be said that the supermarkets of New Zealand are more innovative and are known for using technologies that help them in sustaining the price war issues as well as different types of technologies used in the operations of the business activities. The knowledge of innovation implementation is essential in order to simplify the management procedures of the company.
Importance of Innovation to Sustainability and Adaptability of Organization
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