Discuss about the Model of Radical Innovation in Small Software Firms.
Competitive strategy is a series of serious thinking, which is influenced by some established facts behind the making of the strategies. Strategies and innovation are two terms, which have a wrong understanding among the common people. Strategies are something, which dictates the utilization of the available resources of the organizations. On a same note, innovation is something, which is not only limited to the invention of something new such as new technology. It is however the findings of something hidden inside the organizational capabilities and the resources, which are unique to the outer world (Madsen and Walker, 2015). The main purpose of the assignment is to understand the exact meaning of the terms strategies and the innovation with the use of provided video link.
Some of the following key ideas can be derived from the provided video link (YouTube, 2017):
Organizations must know their area of expertise and try to find ways out of the problem with the help of those available resources only
Strategies should be constructed to add values to the existing business operation (Dodgson, Gann & Phillips, 2013)
While making the strategies, firms should also have clear and concise idea about their available resources and the capabilities
Most importantly, organizations need to have identification of their organizational values, which are needed to be sustained for a long term business (Carlo, Lyytinen & Rose, 2012)
The learner is working in a Smartphone manufacturing Company. The Company is still under the growing stages; however, it could not capitalize on he provided chances. The growing Smartphone industry attracted the learner’s Company to compete with the bigger companies. They failed entirely in strategizing the planning, which has also resulted in a below than normal performance of ten Company. Following are some of the necessary guidelines, which could help the learner’s Company in streamlining their strategies to have more productivity from those (Dagnino, 2012):
- Analyzing the available resources and capabilities of the learner’s Company, the outcomes can be discussed in a meeting with the higher management of the learner’s Company
- Highlights of the meeting would be to address the real problem behind the failure and the available potentiality of the Company
- Strategy making should revolve around a small but a particular area of operation, which means that the operation would be done to compete with the smaller companies only
- Competing with smaller companies are the best source to have a firm foothold in the market; once the performance is established and solidified, it is the time to compete with the bigger companies also with some innovative ideas and solid strategies
- Movement and operation of business should be in a systematic way by targeting smaller area of operation at the start and then gradually expanding the operational area
Business Model Innovation
Some of the necessary key ideas behind incepting the innovation into the organization would be to identify first the best feasible business innovation model and then implement the identified business model to have the maximum result. Following are the key ideas that are derived from the provided video link (YouTube, 2017):
- Implementation of one business model at one time
- Setting up a clear communication with all the management staffs and the supervisors, which is important to have an appropriate application of the model in the organization
- To have patience after applying the business innovation model in the organization
- Ensuring a firm commitment from everybody those who are associated to this Company especially from the higher management staffs
- Overcoming those hidden facts also, which are yet to be invented
The Application of the business innovation model depends heavily on the management and the higher management staffs. The business model innovation needs to be identified first. One thing is very important to consider while implementing the business innovation model in the learner’s organization. Following are some of the useful tips for the application of business innovation model in the learner’s Company (Forgang, 2015):
- Identifying the most feasible business innovation model for the Company
- Having a solid discussion with all the higher management staffs in the Company
- Planning the right way to implement the innovation model to trace out the maximum benefits of the model
- Having patience after implementing the business innovation model in the operation, it is necessary for maintaining a continuous focus on the outcomes
- It is also necessary that the inception of the business model is supported by the most feasible technology, which is important for having the maximum success in complex cases such as in the supply chain management (Kaplan, 2012)
- The business innovation model should also be made familiar to all the associated employees of the organization as this is helpful in spreading the feeling of change in the organization
- Implementation of the business innovation model needs to be accompanied by relevant support from the financial department as the required changes would require some serious investments from them (Chesbrough, 2013)
- Implementation of business innovation model does also need to follow a measurable approach, which is helpful in maintaining a sustained performance of the application (McGrath, 2013)
Strategy making is often wrongly believed and are associated to those things, which are in actuality the mission and the objectives of the organizations. It is very important to understand the meaning of strategy before making or planning it. The success of strategy making depends heavily on its proper execution in the organizational practices. Thus, it becomes imperative for the organizations to have a measurable and solid approach while applying the prepared strategies. On a same note, the business innovation model is something, which needs to be accompanied with some solid ad measurable strategies behind the making of innovative approach. Innovation is something, which differentiates one organization from another. However, it is not necessarily needed to be something, which is new and is technically advanced. This is rather the hidden uniqueness, which is more important from the organizational perspectives.
Carlo, J. L., Lyytinen, K., & Rose, G. M. (2012). A knowledge-based model of radical innovation in small software firms. MIS quarterly, 36(3), 865-895.
Chesbrough, H. (2013). Open business models: How to thrive in the new innovation landscape. Harvard Business Press.
Dagnino, G. B. (Ed.). (2012). Handbook of research on competitive strategy. Edward Elgar Publishing.
Dodgson, M., Gann, D. M., & Phillips, N. (Eds.). (2013). The Oxford handbook of innovation management. OUP Oxford.
Forgang, W. G. (2015). Strategy-specific decision making: A guide for executing competitive strategy. Routledge.
Kaplan, S. (2012). The business model innovation factory: How to stay relevant when the world is changing. John Wiley & Sons.
Madsen, T. L., & Walker, G. (2015). Modern competitive strategy. McGraw Hill.
McGrath, R. G. (2013). The end of competitive advantage: How to keep your strategy moving as fast as your business. Harvard Business Review Press.
YouTube. (2017). Business Model Innovation. [online] Available at: https://www.youtube.com/watch?v=B4ZSGQW0UMI [Accessed 24 Apr. 2017].
YouTube. (2017). What is Strategy?. [online] Available at: https://www.youtube.com/watch?v=TD7WSLeQtVw [Accessed 24 Apr. 2017].