Innovation and Creative Thinking - Samsung - Case Study Example

Innovation and Creative Thinking Name: Course: Instructor: Institution: Date of Submission: Executive summary The report looks at how creative thinking and innovation has been tactically incorporated into the company’s culture with the case of Samsung. The report analyzes the critical innovation strategies by Samsung which makes the company an innovative market. some of the strategies discussed in the report includes, the top management support, long innovation cycles and consumer participations. In the report the six Hat thinking theory is analyzed. This revolves around how Samsung company has applied the model in decision making and innovations patterns. The phases of this model as discussed in the report includes, white Hat, yellow, black, red, green and blue Hat. The model is relevant to Samsung as it stresses on the need for a participatory innovation decision approach which calls for workforce and customer product support. The report finds that the progressive advancement attached to Samsung has been as a result innovations based on comprehensive market research and studies. The research also finds out that despite Samsung being a market leader it is very hard for the company to determine the changing customer needs and hence the need for extensive innovation research. In the report the company hires the best and competent workforce to aid in creative thinking. Creative thinking by the workforce helps in the transformation of ideas into doable projects. Research overview The report aims at seeking facts and opinions on how companies have over the years embraced innovation and creative thinking in attainment of objectives. The research used secondary sources of information in collecting data on the topic of research. The report uses books and journals because of comprehensiveness of information concerning the topic of research. The internet also a critical research tool in coming up with this report. the research concentrated on ten research materials which includes both books and academic journals. Contents 1.0 Introduction 3 1.1Case company profile 4 2.0 The creative design as success ingredient by the company 4 2.3 The company ensures customers involvement in innovations 5 2.4 Continued innovative product surveys 5 2.5 Long product innovation cycles 5 2.6 Advanced design thinking 6 3.0 Implementation of innovations by Samsung 6 3.1 Common perceptions on innovation 6 3.2 Investing human efforts in innovations 6 3.4 Tools and platforms 7 4.0 The six Hat thinking by Samsung 7 4.1 Analysis of the six thinking Hats as used by Samsung. 8 4.2 Relevance of the six Hat thinking to Samsung creativity and innovation. 9 5.0 Conclusion 10 5.1 Personal reflections 10 References 11 1.0 Introduction The organizations success is majorly determined by the intensity of creativity and innovations exhibited in the products and services. Cultivation of an innovative culture is core to staying competitive in today’s dynamic market according to Naranjo et al (2016). Many companies will often opt to hire a creative workforce that can easily convert ideas into projects that are productive to the company. Creative thinking has shaped out to form one of the key business skills as argued by Joyce (2017). In the todays market each innovation is based on a creative analysis of the changing market and consumer needs. In this paper I will majorly aim at analyzing the strategies for creative thinking and innovations that have led to the success of many companies with Samsung as the case study. 1.1Case company profile The company started its operations in 1938 with Byung-Chull Lee as the founding chairman. The company focused mainly on dried export selling vegetables, fruits and dried Korean fish as the main product. The company was started as a small export business in Korea and has recently expanded to one of the world’s leading electronic company says (Hisrich& Ramadhani 2017). The company specializes mostly in media and digital appliances, semiconductors and system integration. The top quality innovations and processes creatively designed today can be seen as the main success factors of Samsung company as discussed by Hisrich & Ramadhani (2017). Recently the company has expanded its product line, improved its market share and grew its revenues. The present innovations by the company include light notebooks, Samsung s6 among others. 2.0 The creative design as success ingredient by the company The company has arguably got its success as a result of the following factors that relate to creative thinking while designing its products. 2.1 Product design start at the top. The company has hired a creative and supportive CEO who oversees the innovations on the company’s products. The highly skilled managing director often leads company’s innovative work by offering enough financial and skills support. The top managers understand the implications of innovations to the success of the business as recommended by Bonakdar& Gassmann (2016). The top management have gathered experience from long working relationships with the company and understands exactly what the company needs to stage a competitive product or service. The top management of Samsung company have conceptualized innovation and creativity into the company’s culture. The fostered innovative culture by the company has contributed to translation of ideas into practical projects. 2.2 The company hires competent workforce. According to Naranjo et al (2016) the competence of the personnel affects the levels of innovation and creativity. The recruitment policy of the company is often based on the competence and skills variety rather than any other discriminatory factors. The policy has contributed to highest innovation by the Samsung company. Generally, the company employees the best workforce that can adapt easily to innovative and creativity requirement as triggered by the dynamic electronics market. The innovations by the company has been successful as result of determined, knowledgeable and competent employee base. 2.3 The company ensures customers involvement in innovations The company seeks ideas from its customer base before staging a new product. Samsung is always strives for forgiveness in case its products brings challenges to the customers and gathers advice on the needs of customers as discussed by Hisrich & Ramadhani (2017). For instance, the case galaxy s2 which had complications in the importation of contacts by the users Samsung built an application known as Easyphonesync that solved the problem and their product regained the needed market share. The new app however was delayed because the other project team in Korea was working on a similar project. The company weighed the options and decided to embark on a new project of releasing the galaxy s3 as had been requested by the customers. This was a tactical move to avoid losing its large customer base (Lo & Hew 2017). The participative approach to innovation ensured that at the launch of the product, millions of the handset were purchased by customers. 2.4 Continued innovative product surveys The product surveys by the company are crucial because they assist in gauging the need for a product by the customers (Sniukas et al 2016). Samsung uses specific quantitative surveys methods in assessing the easy for a product to break to the market. It therefore the innovations are always based on well researched literatures hence the highest chances of success. For instance, the innovation of new Samsung fridge was tied to a myriad of research. It served the purpose of ascertaining the needed customer quality fridge and the competition factors such as pricing strategies for the new fridge. Samsung is an innovation leader attributed to myriad product surveys and research. 2.5 Long product innovation cycles Samsung just like other companies such as apple opt to take years before accomplishing the innovation cycle. Rushed innovations have greatly hit electronic companies for instance when apple rushed to introduced 2000 cube, the product failed miserably leading to recorded loses by the company as discussed by Bonakdar & Gassmann (2016). Samsung creatively takes times, studies the market, make innovation decision and then stages a more competitive product. The company had to work on the galaxy s6 for years before its final introduction to the market. However, some companies may capitalize on a failed innovation as a seed for future development. 2.6 Advanced design thinking Companies that dream of market success should always enforce design thinking in their innovations. Design thinking is an approach to innovation with human as the main Centre as argued by Joyce (2017). Samsung achieve innovations with the highest considerations on the consumer at the heart of all advancement stages. The product innovation is always based on the needs of the customer rather the industry competitive prowess in innovations. The products should be able suit and satisfy the consumer 3.0 Implementation of innovations by Samsung To implement effective innovation, the company has defined certain procedures and functions. They include, common perceptions regarding innovations, human efforts engaged in the innovation processes, platform and tools utilized and structured intervention processes. 3.1 Common perceptions on innovation Samsung perceives that innovation is a strategic priority to its operations. The firm therefore uses innovations in gaining a competitive advantage. The management stipulates the required innovations by workforce and ensures sufficient funding and reward to the most innovative employees a tool that gathers success as agreed by Kim et al (2017). The desired innovative traits are shared among the management and workforce to give a common course of action. 3.2 Investing human efforts in innovations The organization leadership has established clear strategic goals and visions which are well communicated to employees. According to Lee et al (2017) the innovation motivated leaders aid in inspiring and motivating the employees. The organization encourages cross department involvement and role exchange to foster a climate of new ideas. The innovations activities call for the participation of all innovation agents and external partners. 3.4 Tools and platforms The company has established platforms and channels for communicating innovations to the workforce. The management also has established performance metrics in ensuring innovation targets are attained and performance follow up activities such training to improve on the employee’s skills and competencies a strategy recommended for successful innovations by Franca et al (2017). The employees who hit the set innovation targets are rewarded to motivate them. 3.5 Structured intervention processes. The company plays a role in the identification of innovation challenges, set both the short and long term innovation expectations which is followed a thorough risk and success assessment by the leadership. The information on both successful innovations and failed innovations is conveyed to stakeholders for future planning. The company initiates the innovation projects and communicates the requirements for successful projects to the required teams of experts. The strategy has helped to create an innovation culture because employees strive to hit innovations targets to incentives and other rewards (Lo & Hew 2017). 4.0 The six Hat thinking by Samsung The six hat thinking outlines different thinking styles that are associated with different colored hats. By the conceptualization of each type of hat, the company focuses on the thinking style that matches the current situation exhibited by the organization (Low & Hew 2017). For instance, a case of Samsung, this technique has been highly adopted when developing a new product that the collaboration of all workforce in realization of the required success. The application of this thinking module is most employed in the situations that calls for collaborative thinking especially on the critical aspects of the organizations products such as product design, decision on compensation that seem to stretch the companies budget and critical decisions needing the top management, middle management and lower management unison in ensuring decision effectiveness. Samsung operates in a very competitive environment that needs a continued and inclusive efforts by both management and the workers to come up with competitive strategies. The company embraces overwhelming innovations and creativity in areas such as product design, advertisement design and strategic product pricing. According to Low & Hew (2017) the decisions on pricing, advertisement and branding require creative thinking in order to gap all spaces that might be used by competitors. The company operates in the most competitive environment with market leaders such apple always strategizing to take the largest market portion. The competition exhibited therefore calls for continued improvement in creativity and innovations. Staging a new product such the market breakthrough of Samsung s6 involved a series of decisions especially concerning the time of staging the product, effective pricing strategy and the product design. 4.1 Analysis of the six thinking Hats as used by Samsung. The white Hat requires the needed information concerning a product or service known to the required parties. The information here should be factual mostly based on a keen market study. At this stage the company conducts market research to ascertain the customer’s needs. The relevant information gathered is served to the assigned strategic teams and participants. The yellow Hat represents brightness and optimism. Under this phase the company mainly explores on the positives and research on the value and benefits that will accompany a certain invention. For example, Samsung company will explore the profits that they are likely to realize after staging a new invented product for instance a smartphone or a tablet. The gist of this phase as argued by Lee & Hew (2017) is that the company will only explore the opportunities present in the market and even where the innovation is likely to face a challenge, this is postponed to another thinking level. The black Hat represents a judgement stage. Here the challenges likely to face an innovation are explored. The stage focuses on identifying reasons as to why something might not work or the immediate challenges that awaits a certain invention (Lee & Hew 2017). Samsung uses this thinking in analyzing the market competition especially on the pricing of products of the same quality provided by competitors. The strategic Samsung pricing team will analyze prices that companies such as LG, apple and Huawei attach to their products with an aim of coming up with the more competitive market price. The red Hat represent a phase for feelings and intuition. The management receives feeling and emotions concerning a certain innovation or product. The leadership can also express their feelings concerning for instance a product to be staged to the market. The feelings can be in form of fears, loves and likes. The green Hat primarily focuses on the creativity. This includes the alternatives, possibilities and new ideas that can be attached to a certain decision. The phase gives an opportunity for expression of new concepts and perceptions concerning a certain decision in the organization as discussed by Lee & Hew (2017). The management and the task forces responsible for certain invention are presented with a chance to rethink on the inventions blocks and if need be change on certain critical pillars of an invention. The blue Hat thinking process is a phase that aids in the management of the whole thinking cycle. It forms a mechanism that controls all the set guidelines in the thinking process and ensures that no stage is faulted while reaching a crucial organizational decision. 4.2 Relevance of the six Hat thinking to Samsung creativity and innovation. The six hat thinking has helped in ensuring maximum productive collaboration and minimum counterproductive behaviors among the employees. The employees collaboratively contribute to major decisions in the organization and hence elimination of resistance behaviors during strategy implementations. It has to the notion that Samsung have the most committed workforce which arguably can be as a result of inclusivity in decision making. The thinking phases helps Samsung to discover market opportunities even in the areas that competitors see problems. This as a result of stimulated innovations which trigger generation of better and quick ideas. The shorter and more productive decision meetings helps in wiping out conflicts among members and strengthen cohesiveness which leads to better results. Cohesiveness by Samsung is directly linked to six Hat thinking because team participation recommended by the theory (Lee & Hew 2017). The six Hat thinking according to Meinel & Voigt (2017) has also helped Samsung to devise mechanisms for dealing with innovation issues, problems and decisions concerning the available market opportunities and new products ventures. The well-established Samsung channel of communication can be directly linked to its continued creativity and market product innovations. The creative thinking has helped Samsung to ensure product and process advancement through project management. Samsung has a creative managing director who often budgets for project management and improvement of the products. It aims at improving the operating systems of its devices, the life span attached to its devices and the speed of the device processors. The innovative effort is mainly geared towards becoming a competitive brand in the market and attainment of competitive advantage. 5.0 Conclusion Companies operating in technical fields such as electronic requires creativity and innovation in their products to remain competitive in the changing business environment. Samsung one the leading innovative companies in the world has embraced innovation as the major key to its success. The company employee’s various strategies such top management involvement, customer participation and long term product innovation cycles to boost its acclaimed products in the market. the paper has also analyzed how the company uses six Hat thinking in reaching critical innovative decisions. The six Hat thinking basically stresses on the need to follow a stipulated channel while making decisions. The theory has stressed on the need to boast team work in the organization as key to successful innovations as discussed by Valaei et (al 2017). Samsung has over the time expanded its operations in the product line and its success has been as a result of successful product innovations. 5.1 Personal reflections By doing the assignment I have learnt that creative thinking and innovations forms the heart to the success of companies. Samsung company one of the world’s best electronic company started just as a small export business but due to creative and innovative management, the company evolved to become an electronic market leader. Companies need to incorporate both the ideas of the customers and workers in product design. The strategy helps obtain a large customer base and a committed workforce. I can be able to apply the innovative strategies used by Samsung and other leading innovative companies in my career when I become a managing director to a smaller company and hence transform it to international map just as Steve Jobs founder of apple has transformed the company greater limits. References Bonakdar, A., & Gassmann, O. 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Examining learning strategies, creativity, and innovation at SMEs using fuzzy set Qualitative Comparative Analysis and PLS path modeling. Journal of Business Research, 70, 224-233. . Read More