Innovation and Creativity - Essay Example

Innovation and Creativity Name: Institution: Innovation and Creativity Introduction Dell has been able to overcome significant challenges attributed to shifts in technology, customer preferences, and entry of competitors into the personal computers and other technology oriented products and services market. This was achieved by innovation and creativity towards development of new products and services that appealed to client needs, preferences and market trends. The entity was able to shift its business model, from focus on manufacture and sale of personal computers (PCs) towards new models that focus on client preferences and more so on customized personal computers. This innovation has had significant effects on the sale of personal computers around the world. Business Innovation Process Business model innovation is an integral part of an entity’s strategy towards achievement of competitive advantage, especially in volatile markets. Innovation is a delicate process and is driven by a variety of factors such as customer needs, employees, marketing and sales activities, management, competition and profitability of the organization. Innovation Matrix Semi-radical technology 1. Supply chain Radical technology 1. Built-to-order Incremental 1. Cloud technology 2. Cost structure Semi radical business 1. Dell-customer interface/Direct Sales Analysis of Innovation In essence, innovation should be considered as part of a business given that it ensures business continuity. Innovation is primarily made up of two activities namely research, development, and development of new products and services; and strategic definition of the business model as assumed by an organization. In this case, Dell undertook adequate research towards development of an effective product and service delivery approach that also saw a shift in the business model adopted by the organization (Davila, Epstein, & Shelton, 2012). Dell was able to achieve competitiveness amidst concerns of its decline and losses of market share to new entrants in the market. This was achieved by enhancing the build-to-order production and direct sales approach that was geared towards enhancing its relationships with the clients. The entity was able to differentiate itself from other personal computers vendors by using a proactive approach to relate with its clients. The direct sales approach consists of two aspects namely developing direct relationships with the clients and development of products and services that are directly targeted at specific client segments (Davila, Epstein, & Shelton, 2012). In addition, the direct sales approach also provides the entity with the ability to reach out to potential clients within an existing targeted market by its sales force or through activities relative to advertising and marketing. Furthermore, the entity was able to eliminate integrators and resellers in some markets within its supply chain this approach provides the entity with an estimated 6% savings on cost as compared to the use of resellers. In addition, this was also informed by the need to understand client needs, wants and preferences with respect to market trends such that it is able to develop products and services that are competitive in the marketplace (Davila, Epstein, & Shelton, 2012). Customer segmentation for its sales and services enables the entity to segment its customers in three categories namely relationships, transaction and international customers. Segmenting its customers is integral for the entity as it enables it to respond efficiently to the shifts in demand amongst diverse clients, and as a means of developing new segments of customers towards high profitability. Relationship clients are attended to by the field-based representatives in various customer locations and with an equal number of telephone oriented services (Davila, Epstein, & Shelton, 2012). Build-to-order production is also another innovation that has been central to Dell’s business model. It provided a means of focusing on lean manufacturing strategies and just-in time delivery of products as a means of ensuring that costs and resources in the organization are optimized. Using such principles, the entity has been able to focus on minimization of associated inventory costs by reliance on an efficient logistics department and communications with suppliers. In addition, the entity was also able to develop strategies that would optimize speed and efficiency within its production system. This has been defined as the focal point of Dell’s business model and operations as it provides a point of contact for logistics, sales, procurement, delivery, and manufacturing sections in the organization (Davila, Epstein, & Shelton, 2012). Initiators of Innovation Competition is considered as a primary factor of consideration with respect to strategies and processes undertaken by entities to innovate and create new products and services. This is informed by the need to enhance, survive, or grow the market share and capabilities of an organization with respect to an identified market of operation. In this case, Dell was informed by the need to ensure its survival in market that can be described as volatile. In addition, profitability coupled by the need to differentiate the entity from mainstream players is seen as a major influence in regards to the approach assumed by Dell (Davila, Epstein, & Shelton, 2012). Organization’s Portfolio of Innovations Products Cloud and Mobile Applications Personal Computers Services and Customer experiences 1. Built to order 2. Direct Sales Business processes - Manufacturing processes 1. Lean manufacturing 2. Just-in-Time Technology development - Business models Direct relations with customers, built to order Line of business Cloud computing, software development, mobile applications Store design - Packaging - Problem Analysis and Measures Some of the problems evident in the organization include the need for new products and services that would ensure the competitiveness of the entity given rapid trends towards new products as seen amongst competitors. In addition, it is also evident that the entity lacks adequate relationships with other retailers as a means of enhancing supply and access of its commodities to various consumers around the world. The entity should focus on utilizing this model as a means of enhancing its access to new markets and for potential clients around the world. Furthermore, this would ensure that it is able to compete with other players in terms of products and service availability to clients upon demand and request (Davila, Epstein, & Shelton, 2012). Conclusion The entity should also move to adopt new strategies in terms of enhancing its customer and market outreach in new regions to bolster its competitiveness and gains in new markets. This can be achieved by establishing partnerships and adequate research on potential of new markets for its various products and services. In addition, shifting focus onto important functions within the organization would also be imperative to ensure that resources are appropriate to the important aspects of the business towards achievement of set out strategic goals and objectives. References Davila, T., Epstein, M. J., & Shelton, R. (2012). Making Innovation Work: How to Manage It, Measure It, and Profit from It, Updated Edition. FT Press. Read More