Information Technology Project Innovation Management - Case Study Example

Information Technology Project Innovation Management: The Case Study of Trust Bank Name: Course: Tutor: Date: Topic: Information Technology Project Innovation Management: The case study of trust bank Table of Contents Topic: Information Technology Project Innovation Management: The case study of trust bank 1 Table of Contents 1 BACKGROUND 4 INNOVATION MODELS 4 Linear Models 5 Coupling model 6 Interactive model 6 Network model 7 Issues-Based Model 7 Scenario Planning Model 8 MODELS ANALYSIS AND INVESTIGATION 8 Framework for successful delivery of innovation management process 8 The outcome of innovation process management 9 The state of the art in IT industry 10 Waterfall software Development Methodology 10 Prototyping -based methodologies 11 Concepts learned from the existing IT innovation management research 11 Comparison of models and conclusion on models 12 Conclusion on Models 12 CASE STUDY OVERVIEW AND BACKGROUND 13 The Trust Bank Innovation Management 14 Approaches to deal with change 15 Analysis of Innovation for Case Study 15 Comparison of Innovation Model 16 CONCLUSION AND RECOMMENDATION 16 REFERENCES 17 INTRODUCTION Organizations are significantly promoting innovation as they strive to promote response to consumer needs, pursue a promising opportunity, overcome constraints and general efficiency. Most of the organizations have seen significant improvement in computing performance, cost, size and space. They now see innovation as the strategy to maintain market leadership. Innovation is significantly re-shaping Information and Communication Technology Industry. Researchers in this field are striving to make information access cheaper, faster and effective, the changes in IT industry is therefore very huge. Finkelstein, (2006) observed that organizational culture is strong and very difficult to change. The people tend to resist to change and new ways of doing things just because of an installed mindset. The fear of change is inevitable. This is a great challenge to new innovations. The management needs to make firm decisions that enable organizations change and exploit innovative minds of the talented workers. IT has a great role as an enabler of innovation; it greatly impacts the innovation processes, nature of business value created and the banking business models. The current use of communication and decision support systems by organizations is an indication of continuous use of IT to improve on customer service and productivity. (Song and Song 2010) Many organizations have realized the need for people to work together in order to find new solutions to their problems. They have now realized the need for an informal network of employees. This network can really help managers harness the real power of the employee capability and organizational performance. The organizations are using informal networks initiatives in order to promote the spirit of working together in order to bring forth a sustainable business product. This study is centered on innovation and accelerated change in software evolution in the Information Tecnchnology Industry. Reference is given to Information Technology innovation management literature. The case of study is Trust Bank, an organization that is implementing radical changes in its main business process due to the rapid change in Information Technology innovation. This paper strives to illustrate how communication network is used by managers to understand the cultural believes and behavior of the employees in order to implement the desired change program. The paper will further investigates and analyses the different models of innovation looking at the way Trust Bank as an organization apply the innovation principles for organizational management. The report will give a framework on the IT Project Innovation Management; here innovation plan, process, outcome and timelines that will ensure successful delivery will be highlighted. The state of the art in this field will also be highlighted. This will include concepts learned from the research, recommended model for prudent innovation management and change management. BACKGROUND Trust Bank has a vision to be competitive in its operations and effectively serve its customers in the retail business banking. The bank is strategizing to change the way staff works and the use Information Technology to effectively serve customers and reduce cost. According to Finkelstein, (2006), the analysts, investors, consultants and managers need to know where the organization was; where it is now and where it intends to go. The past therefore should lead to an imminent understanding of the present. The history of an organization is therefore very important; it is the history of the organization that gives the basic information needed to understand the organization. Through effective innovation management plans, Trust Bank strives to meet the dynamic requirements of IT industry hence preventing the release of obsolete project. The bank’s Social Network structure is composed of a set of social actors and dyadic ties between the actors. The bank has of employees, Board of management, line managers and customers interconnected by communication channel where information is transferred through electronic, face to face, or other transfer medium. INNOVATION MODELS According to Trott (2002) Models of Innovation have been brought forward from 1950s and passed through six generations to date. Each model has been trying to explain the innovation process within organizations. Traditionally, there were two arguments on innovation. The two schools of thought are social deterministic school and individualistic school of thought. The social deterministic school of thought argues that innovation is realized when there is the influence of a combination of external social factors like economic influences, demographic change and cultural changes. This argument was that innovation occurs when the combination of these social factors is right. The individualistic school of thought on the other hand argues that innovation is realized due to the availability of unique individual talent and that the innovators are born. Organizations have different innovation models based on the uniqueness in their operations. Innovation planning is affected by the purpose of innovation planning, previous innovations by the organization, organizational culture and the rate of change in the organizational environment. Every organization therefore ends up developing their own innovation plans hence selecting the best model as they go on with the innovation process. The following options of innovation models can be selected by an organization to be adapted in their innovation process. Some organizations can choose to integrate the models in order to achieve its operational goals. Linear Models In 1950s to 1960s there was the Technology Push model; this was followed by the Market Pull model in 1970s. They explore the push and pull theories which illustrates whether an organisation is market-led or product-led. Here organisations were seen to create a product and persuade the consumer to take the product by use of the market. According to Conway and Steward (2009), the technology-push model illustrates that innovation is a result of technological developments in an organisation that is innovative According to Trott (2002) Market Pull model was formulated in 1960s and 1970s, according to him, marketplace influences innovation process. The customer’s needs and preferences should therefore be keenly considered while designing products for a target market. This calls for research on the needs of a target market. Linear Models (Conway and Steward, 2009) Coupling model This is a more updated model of innovation; it suggests that innovation is a result of a combined knowledge of science, technology and the marketplace. (Drucker, 2007) This model illustrates the integration of manufacturing, marketing and research and development. According to Drucker (2007), the target markets need a focus team formulated to have a better insight in to consumer needs and expectations and identify the foundation to base innovation. Coupling model (Drucker, 2007) Interactive model According to (2002) this is a modification of the coupling model. It links the technology push and market pull models. This model illustrates the relationship between technology, organization and the marketplace. The flow of information here is not linear but it allows for feedback and great deal of flexibility. Network model Network Model was developed in the year 2000. Trott, (2002) pointed out that this is the most recent model. The model places more prominence on external linkages. According to Trott (2002), there are external inputs that influence the functions of an organisation such as marketing, sales, research and development, finance engineering and manufacturing. In this model, accumulation of knowledge through continuous coordination and integration within these activities is a catalyst to innovative concepts. Network model (Trott, 2002) Issues-Based Model The model identifies current and major issues facing the organization; the stakeholders then brainstorm and provide ideas that solve these issues. The issues and ideas are then compiled into a strategic plan document which is then approved by management. Process monitoring will ensure the plans are implemented as updating is done on areas that need changes. Updating is done by the planners to ensure the goals are being met, the main goal being positive feedback from customers. Scenario Planning Model The model looks at the identification of external forces and changes that might influence organizational operations. These changes include demographic changes, change in regulations, and technological advancement among others. The changes are then evaluated based on future organizational scenarios such as worst case, best case and reasonable case. These are the scenarios that may arise due to the occurrence of each change identified. Organizations reviewing worst-case scenario provokes strong inspiration to change the organization. For each of the scenarios potential strategies are given where the organization should act upon each change. The planners then are able to detect general considerations that should be acted upon in order to counter the emerging external changes. The most likely external change to affects the organization is chosen and the most reliable strategy that the organization can adopt to counter the external change is allocated. MODELS ANALYSIS AND INVESTIGATION In 1950s to 1960s there was the Technology Push model; this was followed by the Market Pull model in 1970s. They explore the push and pull theories which illustrates whether an organisation is market-led or product-led. Here organisations were seen to create a product and persuade the consumer to take the product by use of the market. In the recent models there has been a great shift on focus to the consumer needs and wants. The current organisations consistently analyse and monitor the target market in order to maintain consumer needs. These models include the Coupling model which came around 1980s and the other is the Interactive model was developed in 1990s. Network Model came around the year 2000. Trott, (2002) pointed out that this is the most recent model, developed in the year 2000. The model places more prominence on external linkages. Framework for successful delivery of innovation management process Management of innovation concept is crucial in development and survival of any organization. The organizations should not neglect change occurring from its environment if they need to be market leaders. The bank management faced so many challenges during the implementation and overall management of innovation process. The problems encountered involve the management of innovation and even encouraging innovation within bank. Innovation process just like organization is a complex process. Innovation is complex because it involves efficient management of several activities within the organization. The organization should be committed on its long term growth, identify its threats and opportunities, commit to invest in long-term technological development and accept risk by including risky opportunities in a balanced portfolio. Organizations must be ready to accept change. Burnes, (2004) observed that complexity theories are now being used by organizational practitioners and theorists to understanding and change the organizational operations and culture. This view believes that organizations are similar to complex systems, they are dynamic and non-linear. This therefore means that organizational outcomes can never be pre-determined but governed by simple rules and regulations. Innovation management plan is required in initiating a new project, final implementation and successful delivery. The bank’s innovation management plan needs to translate to positive results and viable products or services. Graetz & Smith (2010) concurred with the resource philosophy of organizational change management that key competence are assets that will improve organizational performance. Trust bank therefore needs to prudently manage its knowledge resources in order to improve its operations. The magnitude and speed of change highly depend on knowledge resource management. Trust Bank therefore need to network resources in order to achieve an efficient innovation process. This is can be achieved by organizing and networking people, data and service in order to achieve efficiency and improved service. The bank can improve networked innovation by identifying constraints to innovation and relaxing those constraints. The network participants should be ready to solve coordination and management problems. The outcome of innovation process management Proper innovation process management can enable the bank improve its operations by use of IT services, this is achieved through:- Reduction of IT infrastructure management cost, Use of proven best practice to improving productivity, Application of professional approach to service delivery hence improving customer service, Use of IT standards and guidelines and Developed skills and experience The state of the art in IT industry The most common software development in the IT industry is the waterfall and prototyping methodologies. Waterfall software Development Methodology The methodology is an analogy of a waterfall which moves in one direction rapidly. In this methodology, there is a movement from one phase to the next where developers proceed from one phase to the next in a sequential manger. The methodology is still in use to date in the field of software engineering. The deliverables in each phase are submitted to the management for approval before proceeding to the next phase. Given that system requirements are identified before development begins, there are minimal changes that occur. The waterfall and spiral software development models are examples of third generation model that incorporates feedback loops from one stage to another. The software management goes through a software life cycle. Waterfall software Development Methodology Prototyping -based methodologies This approach of software development undertakes the analysis, design and implementation phases simultaneously while all the phases are repeated in a cycle until the system meets the user’s needs and preference. At every phase, the user is shown the project where he/she gives a reaction and modification is done. User’s feedback is therefore used to re-analyze and redesign the system. Prototyping Methodology Concepts learned from the existing IT innovation management research The study has clearly indicated that:- Product design and development costs the bank a lot of time, money, energy and human capital. Prudent use of the best management process to manage innovation will certainly increase the chances of product’s success; this will improve productivity and customer satisfaction. Innovation model should provide a clear picture that can assist the users to understand the flow of activities in the organization. Information Technology Systems can also automate simple tasks in the innovation process to speed up the operations. However the IT systems may not be able to replace all the human routine tasks especially team building, human interactions, leadership and group work required in process and product innovation. Comparison of models and conclusion on models Each model of innovation provided for a foundation for future sophisticated models. This is achieved by allowing the inclusion of factors relevant in the process of innovation. Each model has also provided a detailed insight in to the understanding of innovation concept, here a clear link between innovation and other internal and external organizational processes has been provided. The linear models have been criticized due to its linear, sequential nature and the tendency to over-simplify the process of innovation. The model view innovation as a discrete activity isolated from one another. This is contrary to the concept that stages are inter-dependent with feedback from different activities. Innovation stages overlap with one another, same applies to organizational departments, and they are inter-depended with activities overlapping. In software development the prototypes are returned to the development stage for modification to suit customer needs. This is not supported in the linear innovation models. Similarly Software development is complex and has adopted a prototyping approach where feedback is very important. The third generation models like interactive model have this feature and can be effectively used in the software development process. This is because it allows for feedback between the software developers, users and banking management. A good innovation process should therefore be simple to understand and use. The models should have a detailed description on components details for explanation and comparison. Conclusion on Models Marshak and Grant (2008) observed that most of the challenges facing organizations are contributed not only by organizational culture but also poor training, rigid structures and discrimination in employee reward and development. Information Technology Management field is faced with the need for innovation due to the emerging business environment that is technology-demanding and knowledge-intensive. Information technology may involve high costs and complex learning curves hindering efficient implementation, however with proper innovation process management with effective organizational changes, implementation of complex Information technology systems that greatly improve organizational performance. Informal communication is required in IT implementation in order for it to improve service efficiency. CASE STUDY OVERVIEW AND BACKGROUND Banking industry is now giving priority to innovation management in order to further develop its economy. Innovation is indeed the engine room of all economies. Using the Trust Bank as a case study I have read deeper to get an insight into innovation management and organizational change towards adoption of new innovations. It is very evident that Trust bank must be able to manage innovation process effectively and also manage change occurring from its environment in order to remain a market leader in the banking industry. Trust bank staff should be free to act as agents of change by being socially and environmentally responsible and ready to mitigate risks. Trust Bank management intends to mobilize its staff in the business banking division, the mobile staff will be able to spent time with customers in the field getting their views and providing solutions to their problems through prudent product design. Trust Bank is also strategizing to make use of Information and communication technology to ensure banking data is effectively available to staff working from remote locations, the data will be secure and located outside the building 20 kilometers away. All the staffs are therefore expected to be provided with laptops and mobile internet access to facilitate working at home Information technology management entails the proper utilization of organizational IT resources in accordance with their priorities. These it resources include computer hardware, networks, software, data and IT human resources. Trust Bank is making full use of IT management innovation through communication, virtual teams, distributed collaboration and knowledge management. Here, there is application of incremental innovations to improve banks product and processes hence maintaining a satisfied and motivated customer. Radical innovations have also been adopted by the bank in order to provide competitive advantage by maintaining a substantial increase on the size of available market. The main aim of IT management is to create value by use of Technology; this is achieved by aligning business strategies and technology. The management responsibility for this sector within the organization involves budgeting, change management, organizing, controlling, staffing among other aspects unique to technology like network planning, software design and user support. Innovation has greatly helped the bank improve the overall value chain through the use of information technology. Previously, a set of IT resources was allocated to a single line of business; the IT resource here supported only one set of business requirements and could not allow for modification to meet the organizational demands. Through innovation, IT provides have built a product-centric infrastructure where storage, servers, networking, management and security integrated. This management environment allow organizations to adjust its IT resources faster in order to meet the business demands by ensuring the applications are up and running fast. Trust Bank is also using knowledge management tools which allows for recording of knowledge in order to distribute it across the bank business sections. Strengthening banks knowledge has a positive effect on bank’s innovation abilities. Innovation refers to any idea, object or practice perceived to be new by the user. The current design and development of new digital components call for our extension of IT knowledge to integrate the diverse innovation. The Trust Bank Innovation Management The trust bank innovation management plan consists of three phases where measuring done at every cycle and changes are done just before the next cycle starts. Managing Innovation Projects Approaches to deal with change Innovation idea can be very good but if the innovation management and implementation is poor then it is just a waste of precious banking time and money. The bank is always undergoing a form of change through various internal change processes in their entire normal life cycle. Marshak and Grant (2008, p. 10) pointed out that changing the mindsets and consciousness in order to facilitate a shift from the traditional believe to the current appropriate way of doing business. According to them, change is a process that needs to begin from the management and freely flow through the entire organization. There must be a psychological shift in the employee consciousness. Analysis of Innovation for Case Study The success of trust bank innovation process will be achieved when all players are brought on board in order to capture their interests and views while constantly focusing on the end bank customers. When the information is not sufficient, there is a higher risk and uncertainty, however having sufficient information will allow the organization reduce uncertainty hence improving on the speed of doing business. Efficiency of service delivery will therefore be determined by the speed of information flow within the innovation network. The trust bank cross functional teams will be composed of individuals from different departments with different background and explicit knowledge; this will give a customer a fast and complete service or information required. The individuals can still contribute to the innovation process by giving their views. The individual cross functional teams give information linking the innovation process to the core activities of the bank. This is achieved by integrating innovation process with the current activities in order to provide a smooth transition from the current operation to the new innovation ideas in phases. Innovation process management is improved when broken in to manageable stages of activities. This is very important because stage approach helps in simplified innovation management process where focus is activities and there are clear decision making points and effective time and quality control. Comparison of Innovation Model A network approach to innovation is the best alternative since innovation cannot thrive in isolation. There is need for an internal and external approach to innovation. In this case study, information on bankers, employees and Construction Company among other partners plays a major role in the product concept definition. Information is important in the initial stage when product concept identification is being conducted. This is because opportunities are identified and proper decisions made. The network approach to innovation will ensure a smooth flow of information across the network for efficient communication. CONCLUSION AND RECOMMENDATION There should be a continuous research and freedom for change to increase the innovatory level and organizational growth The bank should develop and adhere to innovation management policies in order to achieve its goals and objectives. Adopt modern technology as a main concern in order to improve on operations. Innovative banks attract more customers to bank with them; this therefore calls for trust bank to be innovative with the use of technology in order to meet the purpose of its establishment. Inconclusion Innovation has really come a long way ever since it was recognized as a priority for organizational survival. This paper has presented the concepts of various innovation models and provided a framework for effective innovation process management within trust bank: a case study in this case. Network approach has clearly indicated that idea sharing and exploitation of opportunities need integration of activities and flexible communication network to facilitate effective innovation proves. REFERENCES Bernard Burnes, 2004. Kurt Lewin and the Planned Approach to Change: A Re-appraisal. Manchester School of Management, Journal of Management Studies. Christensen, C. and M. Raynor., 2003, The innovator’s solution: Creating and sustaining successful growth. Boston: Harvard Business School Press. Conway, S. and Steward, F, 2009. Managing and Shaping Innovation, New York: Oxford University Press Inc. Drucker, P.F, 2007. Managing in the Next Society, Revised Edition, Oxford: Butterworth-Heinemann Fiona Graetz & Aaron C.T. Smith, 2010. 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